Valuation of Intangible Assets in Global Operations

by Farok J. Contractor

Overview

The valuation of intangible assets has become a central issue in the practice of management. When companies undertake alliances or licensing agreements, effect mergers, sell or purchase brands, or evaluate R&D projects, a key issue is how each party puts a financial value on the intangible contribution. Valuations also have a tax implication, particularly in transnational operations. The contributors, including academics from five nations and expert practitioners from leading accounting and consulting companies, cover intellectual property strategy of global firms, valuation of human capital, and valuation techniques for the transfer or sale of brands, licenses, and other intangible assets.

In addition, the contributors address the special needs of the software and pharmaceutical sectors in separate chapters. This book includes tools, metrics, and models that are of interest to academics as well as global executives. Recommended for valuation experts, scholars, international tax specialists, executives (especially those involved in alliance negotiations, brand equity, mergers and acquisitions, divestitures, and intellectual property management), and officials in such supranational institutions as the EU, OECD, UNCTAD, WTO, IMF, and World Bank.

Product Details

ISBN-13:	9781567204124
Publisher:	Bloomsbury Academic
Publication date:	03/30/2001
Pages:	392
Product dimensions:	6.14(w) x 9.21(h) x 0.88(d)

About the Author

FAROK J. CONTRACTOR is Professor of International Business at the Graduate School of Management, Rutgers University./e Dr. Contractor has accumulated 20 years of experience as an academic, consultant, and corporate executive. His expertise lies in international operations, finance, and investment by global companies. A Fellow of the Academy of International Business, he is President of the International Division of the Academy of Management in 2000-2001.

Table of Contents

Preface
Introduction: Why Valuation of Intangibles is a Crucial Unresolved Management Issue by Farok J. Contractor
The Principles and Context of the Valuation of Intangibles
Intangible Assets and Principles For Their Valuation by Farok J. Contractor
Leveraging Your Intellectual Property: A Proven Path to Value Extraction by Walter L. Willigan
Valuation of Intangibles and Knowledge in Corporate Alliances
The Valuation of Alliance Knowledge by Andrew C. Inkpen and Anoop Madhok
Compensation Structures in International Licensing Agreements: An Agency Theory Perspective by Preet S. Aulakh
Licensing Government-Owned Inventions and Establishing Royalty Payments Thereon by Jacob N. Erlich
In-House R&D, Outsourcing or Alliances? Some Strategic and Economic Considerations by Rajneesh Narula
Real Options Analytical Techniques
The Option Value of Investment in R&D by David J. Neil and Nigel A. Hickey
Valuation of International Joint Ventures: A Real Options Approach by Anju Seth and Sung Min Kim
International Tax and Transfer Pricing Issues
Where Will MNEs Develop Intangibles? The Effect of Recent US Income Tax Transfer Pricing Rules for Intangibles by Bin Srinidhi
Current Issues in Valuation: De-Bundling Composite Trademarks and Other Intangibles in Transfer Pricing Analysis by Margaretha C. Haeussler and John W. Clarry
Valuing Intellectual Property and Corporate Expertise: Some Focused Examples
The Valuation of Data Processing Intangible Assets by Robert F. Reilly and Pamela J. Garland
Knowledge Valuation: The Issues, With an Application to the Software Industry by Ravi Sarathy
Copyright Intangibles by Robert P. Schweihs
Valuing an Assembled Workforce by Elizabeth King
The Value of New Knowledge-Based Intangible Assets: An Examination in the Global Pharmaceutical Industry by Kannan Ramanathan, Anju Seth, and Howard Thomas
The Role of Intangible Assets in Global Strategy
Valuation of Knowledge in Service Sector Multinationals by Robert Grosse
Strategic Value of Technology and Brand Equity for Multinational Firms by David H. Gobeli, Chandra S. Mishra, and Harold F. Koenig
Organizational Structure in a Global Context: The Structure-Intangible Asset Portfolio Link by Olivier Furrer, D. Sudharshan, and Howard Thomas

Editorial Reviews

In 18 papers from a 1999 conference at Rutgers University, scholars and practitioners in business, law, and specific industries from five countries develop methods, benchmarks, tools, and techniques to put a monetary value on intangible assets in the context of alliance negotiations. The academics were asked to explain how their models work in actual negotiations, and the practitioners to put their war stories into a larger context. Annotation c. Book News, Inc., Portland, OR (booknews.com)

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