Title: The internal attributes of technology as determinants of economic valuation of technology

Authors: Hyun Woo Park; Jai Kang

Addresses: Korea Institute of Science & Technology Information, 66 Hoegi-ro, Dongdaemun-gu, Seoul, Korea ' College of Business, San Francisco State University, 1600 Holloway Avenue, San Francisco, CA, USA

Abstract: This study empirically determined the degree of influence that certain internal attributes of technology exercise on discounted cash flow (DCF)-based economic valuation of technologies, based on 956 cases of technology valuation that were performed in Korea during 2005-2009. We found each of three DCF determinants, i.e., the estimated life span, discount rate, and technology contribution ratio, differed significantly per ANOVA tests and Kruskal-Wallis tests, depending upon each of such technology attributes as: the purpose of valuation, the technology's stage of commercialisation, the type of intellectual property, the field of technology, and the industry area of the technology's application. We then performed categorical regression to measure the relative strength of influence being exercised by individual technology attributes in determining technology value, and we found that the purpose of valuation, and the technology's stage of commercialisation, and the industry area of application, in a descending order, were most influential on the valuation professional's ultimate assignment of the economic values of technologies.

Keywords: technology value; discounted cash flow; DCF; technology life span; discount rate; technology contribution ratio; internal attributes; technology attributes; economic valuation; Korea.

DOI: 10.1504/IJTM.2015.071555

International Journal of Technology Management, 2015 Vol.69 No.2, pp.166 - 186

Accepted: 31 Oct 2014
Published online: 31 Aug 2015 *

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