Seminar (Dept. of Management Science and Engineering)

Title: Capacity Sharing Contracts and Subsidy Policies Under R&D Uncertainty

Speaker: Xiaole Wu (School of Management, Fudan University)

Time: 10:00 (Monday), May 27th, 2024

Venue: Room 502, Mingde Business Building

Language: Chinese/English

ABSTRACT:

Besides R&D uncertainty, firms in the semiconductor and pharmaceutical sectors face long lead times to set up production facilities. To reduce time to market, some firms make upfront capacity investment before the development of the new product is complete. To reduce capacity investment risk, capacity sharing enables a firm to recover some of its capacity investment by producing for its competitor should it fail and yet its competing firm succeed in product development.