Journal of Chemical and Pharmaceutical Research (ISSN : 0975-7384)

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Original Articles: 2014 Vol: 6 Issue: 3

Influence on R & D project of Chinese IT corporations by talent introduction -a real option model


The IT Corporations’ Market environment in China is different from other countries. The roles of Chinese IT Corporations in technology are followers, and most of their products are imitated from the leader corporations. However, the key factor of R&D project in a corporation is human resource. So, the purpose of this paper is analyzing the relationship between of cost and benefit of corporation’s R&D project by real option and econometrics. A modified real option model is used and is counted by specific numbers. The result shows that ratio of cost and benefit of R&D project is the key factor of making decision of talent introduction and the degree of making decision of talent introduction it can affect, it also proves that the existence the relationship of cost and benefit of R&D project. In other words, this result explains the reason of the liquidity of technical personnel and intense rate of skilled employees robbing between corporations. Moreover, this result can offer advice and development direction for Chinese IT Corporations.

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