The Impact of Factors of Market and Technology on the Decision about Technology Innovation Investment*

Abstract: The appearance order of technologies with different quality and level is affected by market preference, the differences in product quality and develop cost between two technologies or products. With considering factors of market preference, the differences in product quality, and develop cost, this paper constructs real options model to analyzes the equilibrium of investment strategy of two competing firms who are asymmetric in product quality and technology level, and to investigate the investment interval between two firms. This study explains the phenomena of PAS （Personal Access Phone System）from point view of technology innovation