Table 2. Strengths and weaknesses of the... | Emerald Publishing

Table 2.

Strengths and weaknesses of the approaches and methods used by the TTO

Approach	Strengths	Weaknesses	Main methods
Cost	Sunk Cost	It provides the basis for patent valuation.	Considered the worst by the TTO for not clearly reflecting the potential of the technology. Inputs survey.
Market	Royalty Rates	Consolidated and reliable bibliography. Support from renowned international institutions (e.g. benchmarking). TTO’s trading history on a database.	Basis for Royalty Rates for Licensing Intellectual Property (Parr, 2012) is considered outdated by the TTO.
Finance	Cash Flow Discounting	No relevant point was highlighted or checked during the interview.	Little used by the TTO. Does not support negotiation. Values less reliable than those obtained with market and cost approaches. Less justifiable for university and clients.

Approach	Strengths	Weaknesses	Main methods
Cost	Sunk Cost	It provides the basis for patent valuation.	Considered the worst by the TTO for not clearly reflecting the potential of the technology.Inputs survey.
Market	Royalty Rates	Consolidated and reliable bibliography.Support from renowned international institutions (e.g. benchmarking).TTO’s trading history on a database.	Basis for Royalty Rates for Licensing IntellectualProperty (Parr, 2012) is considered outdated by the TTO.
Finance	Cash Flow Discounting	No relevant point was highlighted or checked during the interview.	Little used by the TTO.Does not support negotiation.Values less reliable than those obtained with market and cost approaches.Less justifiable for university and clients.

Source: Research data