Approach of real option on technology innovation: Taiwan’s DRAM industry.

• Main Authors: Hung-Weng Li, 李弘文
• Other Authors: Yijen Wang
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/62533738968469532759

碩士 === 銘傳大學 === 金融研究所 === 90 === In the recently model, the optimal invest strategy of firm from point of real option; all assume that the progress of technology is a continuous stochastic process. But in practice the technology innovation is stepwise, like a jump process. So in our research, we add a technology process into the existed continuous process, then apply the derive result on Taiwan’s DRAM industry. Under suitable conditions, we have found that the higher the low tech level product’s price, the higher the upgrade investment cost, the higher the high tech level product’s unit cost, or the more the low tech level product’s demand, then the more incentive that the firm take the new technology to produce high level product. Furthermore, the more the technology innovation, the lower probability the firm investment strategy is step by step.