Evaluation research on the value of High-tech Virtual Enterprise based on compound real option theory

The premise to build a High-tech Virtual Enterprise (HTVE) is to evaluate correctly its value. In this paper, we construct the three phases HTVE investment decisions based on R&D cooperation and show that the HTVE has compound option features. On the basis of the datum of a HTVE composed from A and B firm, we use the Geske Model to calculate HTVE´s compound option value, from which the result is more realistic than traditional methods. The significant research ideas are provided for correctly evaluating on others virtual enterprise value.