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Keywords

technology life cycle theory, patent value, share rate, discount rate

Abstract

A scientifically rigorous and accurate evaluation of patent value is crucial for enterprises aiming to identify and consolidate their technological advantages and enhance market competitiveness. It also serves as a key basis for informed investment and financing decisions. Despite its undeniable importance, existing patent valuation methodologies predominantly focus on static assessments, which often fail to accommodate the dynamic characteristics of technological evolution. This limitation poses significant challenges in accurately determining the true value of patents in practice. Traditional patent valuation approaches frequently overlook the dynamic progression of technology and its long-term impact on patent value. As technology advances through various life cycle stages—from initial development and growth to maturity and eventual decline—patent values are subject to considerable fluctuations. Static models generally prove inadequate for capturing these temporal variations, leading to potential inaccuracies in valuation that can adversely affect business decisions. Currently, there exists a notable research gap concerning the dynamic aspects of patent value evaluation. The lack of targeted studies in this area results in many enterprises relying on outdated or overly simplistic valuation methods that may not accurately reflect the current or future potential of their intellectual assets. This paper aims to address this gap by focusing on the dynamic development of patent technology and proposing enhancements to traditional valuation methods. By integrating technology life cycle theory, this study improves the traditional income approach to patent valuation. Utilizing a phased calculation methodology, this research adjusts key parameters such as profit-sharing rates and discount rates to align with the distinct stages of the technology life cycle. Firstly, the traditional income method’s calculation formula is refined. Secondly, the technology income duration is determined, and a Logistic model is employed to delineate the stages of the patent life cycle. Thirdly, both the technology sharing rate and discount rate are calculated in phases, allowing for a phased assessment of patent value. Finally, the results from each stage are synthesized to yield a comprehensive assessment of patent value. This refined methodology enhances the precision and accuracy of patent valuation. To demonstrate the applicability of this improved method, the paper presents a case study utilizing patent data from Yantai Minshida Special Paper Co., Ltd. The results of the income approach, improved based on technology life cycle theory, align more closely with market values and exhibit high accuracy and feasibility. This research validates the application potential of technology life cycle theory in patent value evaluation, indicating that its integration can significantly enhance the effectiveness of patent valuation assessments. The findings of this study provide valuable insights for both future academic inquiry and practical applications in the domain of patent valuation. The refined valuation method not only addresses the limitations of static approaches but also offers a more dynamic and flexible evaluation framework. As technology continues to evolve rapidly, adopting such innovative patent valuation methods will become increasingly vital for businesses seeking to maximize the value of their intellectual property portfolios. In summary, this paper advances the field of patent valuation by integrating technology life cycle theory with traditional income methods, providing a more accurate and practical framework for assessing patent value. The successful application of this method in the case study further underscores its broader applicability, offering new avenues for future research and enhanced practices in patent valuation.

DOI

10.16315/j.stm.2024.05.003

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