Commercialization of Intangible Assets

Nowadays firms accumulate large stocks of unexploitedtechnologies that can be transformed into new sources of profits.However, the commercialization of intangible assets is a complexprocess determined by several factors such as uncertainty,production capabilities and the interaction of firms in markets fortechnology. This book explores the optimal commercializationstrategy for patented technologies. When the market value ofintangibles is uncertain and the costs associated with thecommercialization of the idea are irreversible, there is an optionvalue to delay the acquisition of complementary assets to producein-house, creating a potential incentive to license. This studyshows that market uncertainty increases the reservation value ofthe licensor, making it more difficult to engage in technologylicensing deals. Given the uncertainty in the market value of thepatent to be commercialized, the firm prefers to wait and see,rather than to license a technology that can be more valuable inthe future. The results presented in this book have importantimplications for business policy, shedding some light on theprocess of commercialization of new technologies.