In general, every business owns three types of assets. Monetary assets include cash, credit, or loans; physical assets include equipment, land, buildings, goods, and inventory; and intangible assets include any type of non-physical asset (such as technical knowledge and technology, trademarks, copyrights, patents, and legal licenses). Today, the intangible assets of companies have become significantly important in global trade and for increasing revenue for both small and large economic enterprises.
One of the challenging activities in the field of technology is valuing these assets. Since technology is part of intangible assets and has intangible value, converting this intangible value into a tangible form and expressing it in monetary terms is a very difficult and complex task that requires extensive study, research, and training.
There are generally two fundamental approaches to pricing:
1. First Approach: Using empirical methods based on trial and error to estimate prices (rules of thumb).
2. Second Approach: Using scientific and mathematical methods to estimate prices.
Empirical methods based on trial and error and rough estimates are commonly used in economic enterprises. They provide an estimate based on the mindset and experience of specialists regarding the value of a product, and based on this, a price is determined for the market. This price is then adjusted and refined based on feedback received from the market. This method is not widely applicable due to the various costs, revenues, and risks associated with different royalties, but it is used as a simple method.
Scientific models for valuing technology include cost-based, income-based, market-based, and real options methods, which are used according to the circumstances.
