Valuing the Innovation Potential of New Materials

Authors

DOI:

https://doi.org/10.54779/chl20220432

Keywords:

technology valuation, innovation management, nanotechnology industry, statistical simulations, real options

Abstract

In this paper we address the topic of capital budgeting in highly dynamic and innovative industries, featuring major uncertainties with respect to the future development and acceptance of technologies and end-user products in the market. Focusing on the nanomaterials industry, a model has been developed using empirical data and integrating features of life cycle costing (LCC) and parametric simulation (Monte Carlo). A recursive solution of LCC allows an end-product benchmark costing for the materials, which currently lack commodity market pricing, while the simulation provides a valuation utility for the techno­logy-specific flexibility to switch production. The underlying research offers a broad scope of applications in potentially high-value-added environments.

Published

2022-07-15

How to Cite

Vlachý, J. (2022). Valuing the Innovation Potential of New Materials. Chemické Listy, 116(7), 432–436. https://doi.org/10.54779/chl20220432

Issue

Section

Articles