Real Options: a proposal to assess R&D projects at agricultural public research centers

Luzia Vedovoto Graciela () and Diego Prior
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Luzia Vedovoto Graciela: Universitàt Autònoma de Barcelona

Contaduría y Administración, 2015, vol. 60, issue 1, 145-180

Abstract: Investment decisions in research and development (R&D) are important to the success of organizations, especially for public research. This paper evaluates an R&D project (seed breeding) using the traditional method, the Net Present Value, and the more contemporaneous technique of real options. Economic Surplus Theory and Monte Carlo simulations are used to estimate social benefits. The results indicate that the real-options approach is a useful tool for assessing R&D public projects.

Keywords: project valuation; real options; public research (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:nax:conyad:v:60:y:2015:i:1:p:145-180

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