Title: Assessing the value of e-businesses in emerging markets: spotlight on Romania

Authors: Miruna Mazurencu-Marinescu, Peter Nijkamp

Addresses: Department of Statistics and Econometrics, Academy of Economic Studies, Bucharest, Romania. ' Department of Spatial Economics, Vrije Universiteit Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands

Abstract: The e-bubble of 2000 was followed by a slowdown from 2001 to 2003, but recently the markets are e-bubbling again, especially the emerging ones in growing economies. An increasing number of transactions with e-businesses appears to occur which prompts the need for valuing the firms involved and for designing an appropriate methodology for their appraisal. Although a vast literature is dedicated to financial valuation techniques for a wide spectrum of companies in established markets and to appropriate valuation techniques adapted to emerging markets, there is thus far hardly any attention dedicated for the valuation of e-businesses in emerging markets. This paper aims to fill this gap, as in any innovation policy it is critical to estimate the value of new economic activity in a given region, particularly if it concerns high-risk new investments. The scope of this paper is to review the existing literature in the field of e-business and to explore an appropriate approach for a solid and practical methodology of valuing e-businesses in emerging markets. We aim to develop such an operational e-valuation framework utilising as a basis some evidence from Romania|s emerging market.

Keywords: valuation; e-business; emerging markets; electronic business; Romania; high-risk investments; new investment; innovation policy.

DOI: 10.1504/IJFIP.2008.016907

International Journal of Foresight and Innovation Policy, 2008 Vol.4 No.1/2, pp.71 - 89

Published online: 28 Jan 2008 *

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