Definition of Technology Appraisal
What is Technology Appraisal?
- Technology appraisal refers to a systematic and in-depth assessment of the technology competence, marketability and commercial viability of technologies (intangible assets or intellectual properties, to be more specific) or technology projects. Evaluation results are then expressed in monetary value, ratings, scores and/or opinions. Usually the technology appraisal is undertaken as a part of underwriting process in reviewing SMEs' applications for financing supports.
Why Technology Appraisal?
- In the era when the intangibles assets represent a majority of corporate value, it is impossible to judge operational risks of tech SMEs appropriately without knowing true revenue potential of the intangible assets held by them.
- However, financing firms' understanding on the tech SMEs' technological factors is much limited. Due to this information asymmetry, innovative SMEs have difficulty in securing sufficient funding even when their growth potential is quite high.
- Technology appraisal service of KOTEC addresses the problem of information asymmetry. Clear picture of clients' technological competence and future revenue potential enables financing firms to make informed decisions and embrace tech SMEs more positively. It can prevent prominent innovations from vanishing unnoticed and unharnessed, reducing the overall opportunity costs of R&D activities across the nation.