Academic intellectual property: valuation and commercialization issues

Statistical analysis of data from the USA National Research Foundation, European Patent Agency, OECD countries and Rosstat demonstrated the growth in the number of intellectual property objects and profit from their use registered by the universities. At the same time economic foundations of intellectual property practical use by the universities have not been properly formed yet. For example there are no methods for evaluating intellectual property objects that would consider peculiarities and limitations of their use for accounting purposes. Because of that the research is aimed at solving applied academic problem of intellectual property objects identification in university accountancy system on the basis of their evaluation as well as the choice of commercialization methods for including these objects into economic system. Research objectives predetermine the logic of the process and are related to summing up existing experience of intellectual property commercialization by universities; object identification problems in accountancy; developing object evaluation method within the framework of cost approach; foundation for choosing the best method of intellectual property commercialization for the university. Conclusions and recommendations are based on theoretical and methodological norms developed by OECD and WIPO in relation to intellectual property management, modern research ideas, legal documentation requirements, accountancy and valuation standards. In order to solve stated tasks we used methods applied by cost, profit, comparative evaluation approaches, matrix method, hierarchy analysis method. Matrix method originates from strategic management theory and allows for organizing intellectual activities results accountancy according to innovative process stages and research works performed. It also gives a chance to form intellectual property objects evaluation on the basis of costs incurred during their creation. Practical testing of the method on the basis of ECM program owned by NSTU demonstrated that his method can be recommended for using by the universities not only to calculate initial costs, but also to define replacement costs of objects. NSTU experience proved that gaps in university accounting of research and development costs lead to significant underestimation of intellectual property object value. Research demonstrates hierarchy analysis method opportunities for justifying the choice of the intellectual property commercialization method that is preferable for the university. It also identifies intellectual property commercialization methods that are most typical of academic community and suggests their evaluation criteria. Obtained results demonstrate that for the Russian university management practice the priority trend would be to use intellectual property in rendering services which is less typical for international practice. Theoretical importance of the research is related to improving evaluation of university intellectual property objects within the framework of cost approach. Practical importance is in in the use of developed evaluation method in introducing objects into the accountancy system and charter capital of university innovation companies, as well as in developing patent policy and university accountancy policy. Therefore this work might be particularly interesting for administrative and managerial staff and accountancy personnel of the university.