Formation of innovative-industrial cluster strategy by parallel and sequential real options

Economics of engineering decisions as a part of sustainable development

The subject of this study is the strategy of the innovative-industrial cluster. The purpose of this work is to form a cluster strategy using parallel and sequential real options. The method proposed for this involves applying a parallel real option when justifying the prospect of acquisition, and a sequential real option to assess the prospect of individual development. A parallel option involves assessing risky forms of financing as part of the cluster strategy presented by the core company. In this case, the operation "management buyout" (MBO) is considered, for example, from the managers of the parent organization. A sequential option implies the stage of cluster strategy implementation. In this case, we consider two options that make up the sequence of possible adjustments to the strategy of the core company. This is an option to develop experience in the cluster and an option to switch the cluster strategy. As an example of the implementation of the presented method, the process of forming a strategy for the development of a pilot electric power cluster, was considered. Here, a sequential option allows us to obtain a slightly higher net present value than the net present value of a parallel option. Therefore, the managers must themselves decide whether to negotiate on the acquisition or to independently develop further based on the stage of implementation of the cluster strategy. The second choice will allow the preservation and development of the pilot innovative-industrial cluster of the electric power industry in the region in accordance with the priorities of the region in which it is located. This will make it possible to further realise the innovative potential in the region.