TY - GEN

T1 - Technology abandonment and the time value of diffusion

AU - Parvin, Albert J.

AU - Beruvides, Mario G.

N1 - Publisher Copyright:
© 2019 IISE Annual Conference and Expo 2019. All rights reserved.
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.

PY - 2019

Y1 - 2019

N2 - The Time Value of Money (TVM) is a foundational concept taught in Engineering Economics, used by decision-makers to determine if an investment is worth pursuing. The concept of the TVM is that money available in the present is worth more than the same amount in the future due to its potential earning capacity. TVM addresses the value of money (i.e., investment) with respect to time, but the inverse, the valuation of time, is really not the concern of economics. The value of money changes over time but does the value of time itself change as it progresses from present to future. One hour spent today is the same as one hour spent tomorrow. Conversely, a dollar spent today will not have the same value as a dollar spent next year based on the core principle of finance that money can earn interest. A standardized economic measure of technology abandonment, referenced to units of time, termed Diffusion Time Value, is a basic technological approach to accessing a technology’s viability. So, the opportunity value of time, related to a technology’s potential economic impact cannot be ignored. This paper explores the characteristics and implications of the Time Value of Diffusion in technology abandonment.

AB - The Time Value of Money (TVM) is a foundational concept taught in Engineering Economics, used by decision-makers to determine if an investment is worth pursuing. The concept of the TVM is that money available in the present is worth more than the same amount in the future due to its potential earning capacity. TVM addresses the value of money (i.e., investment) with respect to time, but the inverse, the valuation of time, is really not the concern of economics. The value of money changes over time but does the value of time itself change as it progresses from present to future. One hour spent today is the same as one hour spent tomorrow. Conversely, a dollar spent today will not have the same value as a dollar spent next year based on the core principle of finance that money can earn interest. A standardized economic measure of technology abandonment, referenced to units of time, termed Diffusion Time Value, is a basic technological approach to accessing a technology’s viability. So, the opportunity value of time, related to a technology’s potential economic impact cannot be ignored. This paper explores the characteristics and implications of the Time Value of Diffusion in technology abandonment.

KW - Technology Abandonment

KW - Technology Diffusion

KW - Time Value

UR - http://www.scopus.com/inward/record.url?scp=85085865861&partnerID=8YFLogxK

M3 - Conference contribution

AN - SCOPUS:85085865861

T3 - IISE Annual Conference and Expo 2019

BT - IISE Annual Conference and Expo 2019

PB - Institute of Industrial and Systems Engineers, IISE

Y2 - 18 May 2019 through 21 May 2019

ER -