THE SOURCE OF COMPARATIVE ADVANTAGE IN THE BIOTECHNOLOGY INDUSTRY: A REAL OPTIONS APPROACH

Brian F. Lavoie and Ian Sheldon

No 21508, 1999 Annual meeting, August 8-11, Nashville, TN from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Sources of heterogeneity within the process of R&D investment, such as international differences in the maximum per-period rate of investment and level of regulatory uncertainty, offer a plausible explanation for US comparative advantage in biotechnology. Using dynamic stochastic simulation, the results presented in this paper suggest US biotechnology firms may initiate more R&D projects, innovate earlier and more rapidly, persevere longer in the face of mounting R&D costs, and successfully complete more R&D projects than European firms.

Keywords: Industrial Organization; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 14
Date: 1999
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The source of comparative advantage in the biotechnology industry: A real options approach (2000)
Working Paper: THE SOURCE OF COMPARATIVE ADVANTAGE IN THE BIOTECHNOLOGY INDUSTRY: A REAL OPTIONS APPROACH (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea99:21508

DOI: 10.22004/ag.econ.21508

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