The Comparative Advantage of Real Options: an Explanation for the Us Specialization in Biotechnology
نویسندگان
چکیده
Comparative advantage based on resource endowments cannot explain United States (U.S.) leadership in biotechnology. Sources of heterogeneity within the process of research and development (R&D) investment, such as international differences in the maximum per-period rate of investment and regulatory uncertainty, offer a plausible explanation that can be incorporated into a real options approach to investment.
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