||High-tech semiconductor industry has several important characteristics: high capital investment, technology intensive, rapid change and high competition, compared with traditional industry. Company cannot follow old rules in such high-risk/high-payoff industry. For sustainable operation, company has to innovate in order to increase its competitive advantage. Innovation is about finding a getter way of doing something, no matter products, processes, services, technologies or any ideas about organization or strategy.|
However, we are in a rapid changing and competitive environment and limited resources. It is important to integrate all information and resources in limited time and resources to make right choice and keep the decision flexible in an innovation activities. We need an effective method for innovation management.
In this study, we use the concept of “Real options” theory to deliver an innovation management method with dynamic which keeps the decision flexible. We use several cases to analyze and illustrate that the method of innovation management can be used on high-risk/high-payoff innovation activities of high-tech semiconductor industry. The results can make companies more advantageous and competitive.