IDEAS home Printed from https://ideas.repec.org/a/ids/ijpdev/v21y2016i2-3p175-189.html
   My bibliography  Save this article

Profit-sharing and investment strategies of a one-leader-one-follower R%D alliance with industrialisation risks

Author

Listed:
  • Jing Li
  • Wei Liu
  • He Zhang

Abstract

This paper investigates the profit-sharing and investment strategies for new product development in a one-leader-one-follower R%D alliance while considering the industrialisation risks involved. The long-term value of R%D investment, ROR (rate of return), is used as the decision target by the partners of the alliance. Game models are suggested to inform the decision-making of the R%D alliance. Two cases with different probabilities of industrialisation risks are proposed to demonstrate the different decisions of R%D alliances. The two partners obtain maximal ROR simultaneously under the condition of one case. For the other case, the two partners cannot obtain maximal ROR under the same condition. A dynamic profit-sharing strategy is suggested to manage the R%D alliance. Finally, numerical examples are used to illustrate related issues.

Suggested Citation

  • Jing Li & Wei Liu & He Zhang, 2016. "Profit-sharing and investment strategies of a one-leader-one-follower R%D alliance with industrialisation risks," International Journal of Product Development, Inderscience Enterprises Ltd, vol. 21(2/3), pages 175-189.
  • Handle: RePEc:ids:ijpdev:v:21:y:2016:i:2/3:p:175-189
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=78865
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Fahimullah & Yasir Faheem & Naveed Ahmad, 2019. "A bi-objective game-theoretic model for collaboration formation between software development firms," PLOS ONE, Public Library of Science, vol. 14(7), pages 1-19, July.
    2. Lütkemeyer, Daniel & Heese, H. Sebastian & Wuttke, David A. & Gernert, Andreas K., 2022. "Pricing and market entry decisions in personalized medicine," International Journal of Production Economics, Elsevier, vol. 253(C).
    3. Lütkemeyer, Daniel & Heese, H. Sebastian & Wuttke, David A., 2021. "Overcoming inefficiencies in the development of personalized medicine," European Journal of Operational Research, Elsevier, vol. 290(1), pages 278-296.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijpdev:v:21:y:2016:i:2/3:p:175-189. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=36 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.