A multi-criteria decision framework for IP valuation method selection: “Valuation case” matters

Abstract

This paper explores the applicability of IP (Intellectual Property) valuation methods in the university TTOs context by using multi-criteria decision-making frameworks. The IP valuation methods are evaluated for their usage in university IP and Startup valuation, patent or patent-pending technologies, and different Technology Readiness Levels (TRLs). Data was collected through in-depth structured interviews and a Delphi survey with 17 experts. By descriptive analysis of responses and consensus rates, we proposed a combined multi-criteria decision-making model of Analytical Hierarchy Process (AHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) for university Technology Transfer Offices (TTOs) to be utilized in selecting appropriate IP Valuation methods. Findings reveal that more than one method should be used to make well-supported estimates for patent value. DCF method is the most suggested method. Income methods are most favourable on University IP, Startup's IP, non–patented or patent-pending, TRL 1–6 technologies. Findings can help valuation practitioners, especially from TTOs, design roadmaps for IP valuation.