Devising an economic-legal approach to the viability of innovative technology transfer in the process of its commercialization

Abstract

The object of this study is to determine the economic effect of technology transfer during the period of its viability. This paper suggests a methodology that takes into account the appropriate amount of profit and the accumulated amount of royalties in the commercial use of innovative technology. The necessity of taking into account the viability of the transfer of innovative technology as the beginning of its new life cycle was substantiated. The possibility of formalizing this process in the form of an assessment of the sum of the present values of all projected cash flows, taking into account the eligibility criterion and the barrier rate, has been established. We propose an approach, which, unlike the existing ones, consists in allocating a certain period of viability of innovative technology transfer in the life cycle of technology. It is argued that based on the results of technology renovation, it is possible to assess the economic effect of its transfer due to the benefits of implementation and achievement of licensing activity by expanding the number of licensees. We substantiate the possibility of generating profits and royalties to the licensor as the amount of investment that can and should be directed to the development of a fundamentally new or improved technology in relation to the previous one. The transition to a new technology causes an increase in the overall technological level and leads to the formation of a technological gap between the S-shaped life curves of technical systems and, in parallel, forms a new S-shaped curve of a new technological system based on new knowledge. An economic and legal approach to the development of a methodology for determining the economic effect or viability of innovative-level TT was implemented. The results of the current study could be used in the formation of legislative and subordinate national regulations, as well as serve as a basis for further research on this issue