Market Approach to Valuation Based on Technology Transfer Cases in Korea

Abstract

This study secured comparable sales transaction information of technology transfer corresponding to an active market conditions and proposes a method to assess the similarity of technologies with regard to comparability of technology transfer based on these cases information. In order to analyze the association and similarity between target technology and sales transactions, it proposes the significant factors affecting royalty decision and the cosine coefficient method by industry categories. It also proposes the method to adjust royalty, which means that this method unlike the conventional method provides clear standards to valuators in order to revise royalty. Therefore, it offers a solution to the difficulties of applying the market approach for a lot of valuators that have wanted to apply it and objective method to enhance the reliability of the value of intangible asset evaluated by the market approach.

A Novel Methodology for Estimating Technology Value and Importance of Factors in Market-Based Approach

“…To resolve this issue, some research employed the real-life technology transaction dataset [5,6]. As mentioned in the introduction, these studies cannot handle the multiple response variables because they employed a univariate regression analysis.…”

“…Quantitative methods that utilize statistical techniques based on actual technology transaction data are predominant in extracting the key influential factors. Sung et al and Kim et al [5,6] proposed a method for explaining the relationship between influential factors and technical fees and for selecting significant factors through linear regression analysis. Lee [13] performed a study that extracted and estimated the importance of influential factors related to technicality, ownership, and marketability through factor analysis, whereas Park [14] analyzed the differences in technical fees based on influential factors using ANOVA and t-tests.…”

“…In prior research utilizing technology transaction cases, Sung et al [5] proposed a method to explain the relationship between patent value factors and the transaction amount by using regression analysis. Kim et al [6] explained the relationship between influential factors and royalty rates by assuming technology impact factors as independent variables and royalty rates as dependent variables using logistic regression models. However, previous studies have been limited in that they assume there is only a single response variable to be predicted, such as a royalty rate.…”

Exploring the Factors Affecting Technology Transfer in Government-Funded Research Institutes: The Korean Case

“…This paper investigates all 21 GRIs related to science and technology in Korea to identify the factors that impact technology transfer performance using panel data over five years, from 2015 to 2019. In Korea, various studies have investigated the factors influencing technology transfer [42][43][44][45][46], but research on GRIs has only recently begun to draw attention [45,47], and there has been some ambiguity in the interpretation of the analysis results, as previous literature has reported that the quantitative input of organizational resources into GRIs is not proportional to their quantitative performance [48] and that GRI performance depends on the nature of the institution or its particular mission [49,50]. This may be because GRIs differ in their specific missions, but it could also be due to the budget structure, which is greatly influenced by changes in government and R & D policies.…”

“…Past research on universities has reported that the number of research papers published has a positive relationship with technology transfer and technology fees [42,43,79]. However, a study of 50 universities and 34 government research institutes in Korea found no statistical significance in this relationship [78], and another study that analyzed 1222 national R & D projects reported that the number of research papers affects technology transfer but not technology fees.…”