So why is it that the banking sector is unable to connect with the main value creating – and fastest growing – form of business investment in developed economies – Intellectual Property? And what can we do about it?
Is it true that that patents cannot be valued for sale in transparent markets?
Do they have intrinsic features to prevent the establishment of secondary markets for innovation? Or is it that investors are rather ignorant about patents, brands, software and are not well informed on their risk and reward structures?
Technology entrepreneurs seeking to commercialize their patents often may not have necessary skill sets to communicate the value of IP. Current accounting standards that only partially reflect the value of intangible assets do not make things easier. This leads to market failure, where valuable technology either can’t be exploited, or can’t be scaled up to create competitive global enterprises, while investors miss out on attractive financial opportunities.
Against this background, this talk discusses how we can develop financial markets which support 21st century knowledge businesses.