Media type: E-Article Title: Uncertainty and the market valuation of R&D within a real options logic Contributor: Oriani, Raffaele; Sobrero, Maurizio Published: Wiley, 2008 Published in: Strategic Management Journal, 29 (2008) 4, Seite 343-361 Language: English DOI: 10.1002/smj.664 ISSN: 0143-2095; 1097-0266 Origination: Footnote: Description: AbstractThe aim of this study is to provide new theoretical insights and empirical evidence on the effect of market and technological uncertainty on the market valuation of a firm's R&D capital. A set of hypotheses is developed adopting a real options logic and tested on a panel dataset of 290 manufacturing firms traded in the UK. Consistently with our theoretical model, we show that market and technological uncertainty have distinct effects on the valuation of R&D investments. The results have several important implications for resource allocation to R&D under uncertainty, which we discuss in the concluding section. Copyright © 2008 John Wiley & Sons, Ltd.