Julio Barros Nieto

Group number : 212032_49

COST APPROACH METHOD

VALUATION AND NEGOTIATION OF TECHNOLOGY

Definitions and important concepts

The licensor investment in the technology is

represented by those costs associated with
developing, protecting and commercializing the
technology.

Sometimes the cost approach is used to estimate all

the costs that would be incurred if the licensee were
to obtain, from a different source, technology that
could deliver an identified process or product

Process related to the cost approach

method

The production processes focused on the optimization of

resources to increase income and the innovation and
development processes as a commercial strategy of the
company in its market expansion.

How can companies create value from their

innovation, applying the method cost
approach ?

Being competitive with the development of products

that strengthen its position in the market and that in
turn guarantee a mutual benefit with the client
through quality and price.

October 16/ 2020