Cost approach

Carbonell (2002)
1. The value of a patent is equal to the cost of acquiring it
2. 1. human capital
    1. higher cost component for intangible assets
measure the future benefits of intellectual property
Use
1. in limited circumstances
  1. when the replacement cost is estimated with a reasonable degree of reliability
2. In a recent patent
  1. the cost
    1. 1. is a bechmark tool
Types
1. historical costs
  1. creation of a patent
2. Replacement cost
  1. patent innovation
Failures
1. does not take into account future benefits
2. does not capture patent demand trends
3. does not relate the risk associated with the benefits
4. some patents are not replaced
5. Does not distinguish
  1. Investment expenses
  2. normal operating expenses
advantage
1. objective and consistent
2. reliability of historical cost data
3. the acquisition cost is a reliable indicator of value

Resource summary

	Created by guillermo triana almost 5 years ago