Modeling risky portfolios with guaranteed maximize returns under a patent race

Ji Wang; Chunming Xu

doi:10.24294/jipd.v8i11.8794

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Modeling risky portfolios with guaranteed maximize returns under a patent race

Ji Wang

Chunming Xu

Journal of Infrastructure Policy and Development 2024, 8(11), 8794; https://doi.org/10.24294/jipd.v8i11.8794

Submitted：26 Aug 2024

Accepted：11 Sept 2024

Published：21 Oct 2024

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Abstract

This paper studies the patent race problem of communication enterprises investing in communication technologies, and constructs a portfolio optimization model which considers the expected returns, investment risks, and replacement costs, in order to achieve the dual goals of maximizing the net investment income of backward enterprises and minimizing the expected investment risk. Through numerical experimental analysis, the optimal investment portfolio strategy under different risk levels and the impact of different risk levels on the net income of lagging company are obtained. The research results show that due to the backward research in the first stage of the backward enterprises, when their own investment decision-making power is relatively high, they can focus on the development of self-interested key technology areas in order to achieve the victory of the patent race.

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References

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