Subject. This article considers the issues of formation of an innovation and industrial cluster's strategy through the parallel and sequential real options method. Objectives. The article aims to develop an innovation and industrial cluster's strategy formation methodology using parallel and sequential real options. Methods. For the study, we used the compound real options technique. Results. The article presents an original methodology for developing an innovation and industrial cluster's development strategy, taking into account the assessment of the priorities of the cluster itself and the region where it is located. The process of forming a strategy for the development of a pilot cluster of the electric power industry in the Nizhny Novgorod Oblast, represented by PAO TNS Energo NN, is considered as a case study of the implementation of the presented methodology. Conclusions and Relevance. The presented methodology will help further realize the innovative potential available in the region. The results obtained can be useful to public authorities when planning the development of industrial and innovation clusters and the harmonious development of the country's regions.
Keywords: innovation-industrial cluster, compound real option
Yashin S.N., Koshelev E.V., Kostrigin R.V. [Compilation of linear functional of the value of the innovation and industrial cluster for the region]. Upravlenie ekonomicheskimi sistemami: elektronnyi nauchnyi zhurnal, 2019, no. 12, p. 90. (In Russ.)
Mun J. Real Options Analysis: Tools and Techniques for Valuing Strategic Investments and Decisions. New Jersey, John Wiley & Sons, 2005, 704 p.
Kodukula P., Papudesu Ch. Project Valuation Using Real Options: A Practitioner's Guide. J. Ross Publishing, Inc., 2006, 256 p.
Locatelli G., Mancini M., Lotti G. A Simple-to-Implement Real Options Method for the Energy Sector. Energy, 2020, vol. 197. URL: Link
Lai Ch.S., Locatelli G. Valuing the Option to Prototype: A Case Study with Generation Integrated Energy Storage. Energy, 2021, vol. 217. URL: Link
Tan J.J., Trinidad F.L. A Real Options Model for Loan Portfolios of Actively Traded Philippine Universal Banks. Journal of Global EntrepreneurshipResearch, 2018, vol. 8, iss. 4. URL: Link
Tan J.J. Interfaces for Enterprise Valuation from a Real Options Lens. Strategic Change, 2018, vol. 27, iss. 1, pp. 69–80. URL: Link
Hauschild B., Reimsbach D. Modeling Sequential R&D Investments: A Binomial Compound Option Approach. Business Research, 2015, vol. 8, pp. 39–59. URL: Link
Martins G.B., da Silva M.E. A Real Option Model with Uncertain, Sequential Investment and with Time to Build. Revista Brasileira de Financas, 2005, vol. 3, no. 2, pp. 141–172. URL: Link
Leiblein M.J., Ziedonis A.A. Deferral and Growth Options Under Sequential Innovation. In: Reuer J.J., Tong T.W. (Ed.) Real Options Theory (Advances in Strategic Management, Vol. 24. Emerald Group Publishing Limited, Bingley, 2007, pp. 225–245. URL: Link24008-2
Baranov A., Muzyko E. Valuation of Compound Real Options for Investments in Innovative Projects in Pharmaceutical Industry. Procedia Economics and Finance, 2015, vol. 27, pp. 116–125. URL: Link00980-6
Tavakkolnia A. A Binomial Tree Valuation Approach for Compound Real Options with Fuzzy Phase-Specific Volatility. 12th International Conference on Industrial Engineering (ICIE), Tehran, Iran, 2016, pp. 73–78. URL: Link
Konstandatos O. Third Order Compound Option Valuation of Flexible Commodity Based Mining Enterprises. Archives of Business Research, 2015, vol. 3, no. 1, pp. 19–35. URL: Link
Cassimon D., Engelen P.J., Yordanov V. Compound Real Option Valuation with Phase-Specific Volatility: A Multi-phase Mobile Payments Case Study. Technovation, 2011, vol. 31, iss. 5-6, pp. 240–255. URL: Link
Xu D., Zhou C., Phan P.H. A Real Options Perspective on Sequential Acquisitions in China. Journal of International Business Studies, 2010, vol. 41, pp. 166–174. URL: Link
Renneboog L., Vansteenkiste C. Leveraged Buyouts: A Survey of the Literature. European Corporate Governance Institute (ECGI) – Finance Working Paper, 2017, no. 492/2017. URL: Link
Demiroglu C., James Ch.M. The Role of Private Equity Group Reputation in LBO Financing. Journal of Financial Economics, 2010, vol. 96, iss. 2, pp. 306–330. URL: Link
Bouvier L., Nisar T.M. Design and Impacts of Securitized Leveraged Buyouts. Cogent Economics & Finance, 2015, vol. 3, no. 1. URL: Link
Wehrly E., Shen T. Management Buyouts. In: Augier M., Teece D.J. (eds). The Palgrave Encyclopedia of Strategic Management. London, Palgrave Macmillan, 2016. URL: Link