The role of sustainability and SDGs in patent valuation

Abstract

There is an urgent demand for developing and adopting environmentally sound technologies (ESTs). This article studies the existing methodologies for incorporating sustainability considerations into the complex field of patent valuation, focusing on start-ups and growth companies. Due to the agility and innovative potential, growth companies play a pivotal role in advancing ESTs, and patents serve as crucial instruments in facilitating technology transfer, provided that effective patent valuation processes are in place. The article shows the diversity of guidelines and standards available for patent valuation, highlighting that they provide valuable non-binding frameworks. However, the study reveals that most existing patent valuation standards do not explicitly address sustainability concerns, except for the World Intellectual Capital Initiative (WICI), which is actively engaged in the sustainability discourse. Overall, the challenge is how companies observe sustainability in the valuation process. The United Nations Sustainable Development Goals (SDGs) emerge as a global framework that can guide patent valuation practices. The article highlights the need for patent valuation guidelines to embrace sustainability as an integral component, ensuring that sustainability and ESTs are integrated throughout every phase of the patent life cycle. Acknowledging that start-ups and growing companies often face financial constraints and need guidance in their valuation practices is crucial.