Simple Numeric Model to compute technology-contribution factor for the technology valuation

Abstract

Understanding the value of technology is very important and necessary to manage technology based business effectively not only in the view of valuation of assets but also R&D strategy. The value of technology can be expressed as a value of the technology-contribution portion of the total net business profit which is gained by the technology commercialization. In this paper, we show simple numeric model to compute the technology-contribution factor for the valuation on the basis of an empirical analysis.