Negative value to R&D: Are there applications in which more research and more information leads to a liability instead of an asset?
In the options approach, R&D creates information used by managers to make better decisions. However, if the same information allows another party to make a better decision, the net value of the information might be negative. For example, tobacco companies funded research on the effects of smoking, and then withheld the results. They may have used this information for internal decision making, but the legal system also allowed prosecutors to use this information (once discovered) to make other decisions.
Related Questions
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- Negative value to R&D: Are there applications in which more research and more information leads to a liability instead of an asset?
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