IP-valuation as a tool to sustain innovation

The creation of new knowledge, its commercialization and the ability to appropriate the economic benefits have increasingly become a competitive factor both for firms and, indeed, for economies. Therefore, initiatives that improve the conditions for the generation, diffusion and exploitation of new knowledge in the economy are increasingly sought after. In this light, this chapter considers how more efficient methods to value and capitalize intellectual assets might contribute to the main policy objectives of promoting and sustaining innovation in today's changing environment. This chapter starts by exploring the role intangible assets (IAs) play in the emerging 'market for knowledge'. This theoretical discussion lays the foundations necessary to consider the need to improve conditions for valuation and capitalization of intellectual assets. The chapter then presents a brief survey of intangible valuation approaches. Finally, the discussion considers evidence of difficulties among smaller Norwegian actors in capitalizing on their intellectual assets, before deriving some implications about the need to improve conditions for the utilization of intellectual assets, especially through better valuation practices.