About technology valuation

The research is based on a review of the literature about technology valuation. First, it illuminates the mechanism of the valuation of technology, which is rooted in the intrinsic value of the technology, and how the price is set by negotiation during the trade of intellectual property. Then the study examines the existing pricing methodology for new technologies. Three approaches, the market approach, the cost approach and the income approach, are compared. The research differs from the prior literature by considering the process of technology transfer and the bargaining considerations of the supplier party, the licensor, the negotiating parties, the licensee, of a technology itself. The result of the research provides a template for the process of technology pricing in view of the negotiation process, taking into consideration the market, cost and income aspects of a technology.