Socio-technical transition processes: A real option based reasoning
AbstractUsing a real option reasoning perspective we study the uncertainties and irreversibilities that impact the investment decisions of firms during the different phases of technological transitions. The analysis of transition dynamics via real options reasoning allows the provision of an alternative and more qualified explanation of investment decisions according to the sequentiality of pathways considered. In our framework, flexibility management through option investments concerns both the incumbent and the future technological regime. In the first case it refers to ex-post flexibility management and in the second case to ex-ante flexibility management.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg in its series Working Papers of BETA with number 2009-21.
Date of creation: 2009
Date of revision:
Contact details of provider:
Postal: PEGE. 61, Aven. de la Forêt-Noire 67000 Strasbourg
Phone: +33 3 68 85 20 69
Fax: +33 3 68 85 20 70
Web page: http://www.beta-umr7522.fr/
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-03 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- McDonald, Robert & Siegel, Daniel, 1986. "The Value of Waiting to Invest," The Quarterly Journal of Economics, MIT Press, vol. 101(4), pages 707-27, November.
- Ulrich, Karl, 1995. "The role of product architecture in the manufacturing firm," Research Policy, Elsevier, vol. 24(3), pages 419-440, May.
- Davies, Andrew, 1996. "Innovation in Large Technical Systems: The Case of Telecommunications," Industrial and Corporate Change, Oxford University Press, vol. 5(4), pages 1143-80.
- Floortje Alkemade & Koen Frenken & Marko Hekkert & Malte Schwoon, 2009.
"A complex systems methodology to transition management,"
Journal of Evolutionary Economics,
Springer, vol. 19(4), pages 527-543, August.
- Malte Schwoon & Floortje Alkemade & Koen Frenken & Marko P. Hekkert, 2008. "A complex systems methodology to transition management," Innovation Studies Utrecht (ISU) working paper series 08-12, Utrecht University, Department of Innovation Studies, revised Apr 2008.
- Avinash Dixit, 1992. "Investment and Hysteresis," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 107-132, Winter.
- Suarez, Fernando F., 2004. "Battles for technological dominance: an integrative framework," Research Policy, Elsevier, vol. 33(2), pages 271-286, March.
- Hobday, Mike & Rush, Howard & Tidd, Joe, 2000. "Innovation in complex products and system," Research Policy, Elsevier, vol. 29(7-8), pages 793-804, August.
- Smith, Adrian & Stirling, Andy & Berkhout, Frans, 2005. "The governance of sustainable socio-technical transitions," Research Policy, Elsevier, vol. 34(10), pages 1491-1510, December.
- Islas, Jorge, 1997. "Getting round the lock-in in electricity generating systems: the example of the gas turbine," Research Policy, Elsevier, vol. 26(1), pages 49-66, March.
- Geels, Frank W., 2002. "Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study," Research Policy, Elsevier, vol. 31(8-9), pages 1257-1274, December.
- Pistorius, C. W. I. & Utterback, J. M., 1997. "Multi-mode interaction among technologies," Research Policy, Elsevier, vol. 26(1), pages 67-84, March.
- Gil, Nuno, 2007. "On the value of project safeguards: Embedding real options in complex products and systems," Research Policy, Elsevier, vol. 36(7), pages 980-999, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.