The term ‘valuation’ refers to the assessment of technology in regard to market requirements for a business, and is considered to be an integral part of business. In India, as elsewhere around the world, this issue cannot be underestimated in relation to intellectual property, where valuation plays a crucial role in determining the genuine need for technology and how likely the customer is to adopt it. While intellectual property – in the form of various intangible assets – essentially requires an analysis of customers' desire, the evaluation must also be balanced between research activities and commercialisation. The concept of IP valuation is important due to expenditure on R&D activities to achieve an invention and arrangement of the financial aspects. This intangible asset plays a key role when considering demand versus supply to meet public requirements, as well as to maintain supply chain management.
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