Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
권호 표지
DOI QR코드

DOI QR Code

A Market-Based Replacement Cost Approach to Technology Valuation

기술가치평가를 위한 시장대체원가 접근법

  • Kang, Pilsung (School of Industrial Management Engineering, Korea University) ;
  • Geum, Youngjung (Department of Industrial and Systems Engineering, Seoul National University of Science and Technology) ;
  • Park, Hyun-Woo (Department of Industry and Market Analysis, Korean Institute of Science and Technology Information) ;
  • Kim, Sang-Gook (Department of Industry and Market Analysis, Korean Institute of Science and Technology Information) ;
  • Sung, Tae-Eung (Department of Industry and Market Analysis, Korean Institute of Science and Technology Information) ;
  • Lee, Hakyeon (Department of Industrial and Systems Engineering, Seoul National University of Science and Technology)
  • 강필성 (고려대학교 산업경영공학부) ;
  • 금영정 (서울과학기술대학교 글로벌융합산업공학과) ;
  • 박현우 (한국과학기술정보연구원 산업시장분석실) ;
  • 김상국 (한국과학기술정보연구원 산업시장분석실) ;
  • 성태응 (한국과학기술정보연구원 산업시장분석실) ;
  • 이학연 (서울과학기술대학교 글로벌융합산업공학과)
  • Received : 2014.11.21
  • Accepted : 2015.03.20
  • Published : 2015.04.15
Download PDF
⟨ Previous Next ⟩

Abstract

This paper proposes a new approach to technology valuation, the market-replacement cost approach which integrates the cost-based approach and market-based approach. The proposed approach estimates the market-replacement cost of a target technology using R&D costs of similar R&D projects previously conducted. Similar R&D projects are extracted from project database based on document similarity between project proposals and technology description of the target technology. R&D costs of similar R&D projects are adjusted by mirroring the rate of technological obsolescence and inflation. Market-replacement cost of the technology is then derived by calculating the weighted average of adjusted costs and similarity values of similar R&D projects. A case of "Prevention method and system for the diffusion of mobile malicious code" is presented to illustrate the proposed approach.

Keywords

References

  1. Aggarwal, C. C. and Zhai, C. (2012), Mining Text Data, Springer, New York, NY.
  2. Baek, D. H., Sul, W., Hong, K. P., and Kim, H. (2007), A Technology Valuation Model to Support Technology Transfer Negotiations, R&D Management, 37(2), 123-138. https://doi.org/10.1111/j.1467-9310.2007.00462.x
  3. Berry, M. W. (2004), Survey of Text Mining : Clustering, Classification, and Retrieval, Springer, New York, NY.
  4. Black, F. and Scholes, M. (1973), The Pricing Of Options and Corporate Liabilities, Journal of Political Economy, 81(3), 637-659. https://doi.org/10.1086/260062
  5. Blei, D. M., Ng, A. Y., and Jordan, M. J. (2003), Latent Dirichlet allocation, Journal of Machine Learning Research, 3(1), 993-1022.
  6. Boer, F. P. (1999), The Valuation of Technology, John Wiley and Sons, New York, NY.
  7. Boer, P. and Traps, A. (1998), Pitfalls and Snares in the Valuation of Technology, Research Technology Management, 41(5), 45-54.
  8. Chiesa, V., Gilardoni, E., and Manzini, R. (2005), The Valuation of Technology in Buy-Cooperate-Sell Decisions, European Journal of Innovation Management, 8(1), 5-30. https://doi.org/10.1108/14601060510578556
  9. Goto, A. and Suzuki, K. (1989), R&D Capital, Rate of Return on R&D Investment and Spillover of R&D in Japanese Manufacturing Industries, The Review of Economics and Statistics, 71(4), 555-564. https://doi.org/10.2307/1928096
  10. Hofmann, T. (1999), Probabilistic Latent Semantic Analysis, Proc. Uncertainty in Artificial Intelligence, Stockholm, Sweden, 289-296.
  11. Huang, A. (2008), Similarity Measures For Text Document Clustering, Proc. 6th New Zealand Computer Science Research Student Conference, Christchurch, New Zealand.
  12. Hunt, F. H., Probert, D. R., Wong, J. C., and Phaal, R. (2003), Valuation of Technology: Exploring a Practical Hybrid Model. Proc. Portland International Conference of Management of Engineering and Technology (PICMET), Portland, OR.
  13. Jeon, H. W. (2013), KoNLP : Korean NLP package, http://cran.r-project.org/web/packages/KoNLP/index.html.
  14. Lee, M. D., Pincombe, B. M., and Welsh, M. B. (2005), An Empirical Evaluation of Models of Text Document Similarity, Proc. 27th Annual Conference of the Cognitive Science Society, Mahwah, NJ, 1254-1259.
  15. Li, Y. R. and Chen, Y. G. (2006), Managing Technology : The Technology Valuation Approach, Proc. Portland International Conference of Management of Engineering and Technology (PICMET), Istanbul, Turkey.
  16. Lint, O. and Pennings, E. (2001), An Option Approach to the New Product Development Process : A Case Study at Philips Electronics, R&D Management, 31(2), 163-172. https://doi.org/10.1111/1467-9310.00206
  17. McGrath, R. G. and Nerkar, A. (2004), Real Options Reasoning and a New Look At The R&D Investment Strategies Of Pharmaceutical Firms, Strategic Management Journal, 25(1), 1-21. https://doi.org/10.1002/smj.358
  18. Ministry of Trade, Industry, and Energy (2014), Practical Guide For Technology Valuation.
  19. Park, G. and Park, Y. (2006), On the Measurement of Patent Stock as Knowledge Indicators, Technological Forecasting and Social Change, 73(7), 793-812. https://doi.org/10.1016/j.techfore.2005.09.006
  20. Park, H., Jeon, S., Kim, S. (2012), Comparative analysis of income approach for technology valuation, Proc. Korea Technology Innovation Society Conference, Seoul, Korea, 129-144.
  21. Park, Y. and Park, K. (2004), A New Method for Technology Valuation in Monetary value: Procedure and Application, Technovation, 24(5), 387-394. https://doi.org/10.1016/S0166-4972(02)00099-8
  22. Pavri, Z. (1999), Valuation of Intellectual Property Assets : The Foundation for Risk Management and Financing, Proc. INSIGHT Conference, Toronto, Canada.
  23. Reilly, R. F. and Schweihs, R. P. (1998), Valuing Intangible Assets, Mc-Graw-Hill, New York, NY.
  24. Smith, G. W. and Parr, R. L. (2000), Valuation of Intellectual Property and Intangible Assets, John Wiley and Sons, New York, NY.
  25. Salton, G., Wong, A. Yang, C. S. (1975), A Vector Space Model for Automatic Indexing, Communications of the ACM, 18(11), 613-620. https://doi.org/10.1145/361219.361220
  26. Strehl, A., Ghosh, J., and Mooney, R. (2000), Impact of Similarity Measures on Web-Page Clustering, Workshop on Artificial Intelligence for Web Search, Austin, TX.
  27. Yuan, S. T. and Sun, J. (2005), Ontology-Based Structured Cosine Similarity in Document Summarization : With Applications to Mobile Audio-Based Knowledge Management, IEEE Transactions on Systems, Man, and Cybernetics-Part B : Cybernetics, 35(5), 1028-1040.