Proceedings of the 12th European Conference on Knowledge ...

Knowledge Production and Transfer: Advantages and
Costs
Simona-Clara Bârsan 1 , Mihaela-Georgia Sima 2 and Dan Săvescu 3
1
Research Institute for Analytical Instrumentation Cluj-Napoca, Technology
Transfer Centre
2
Bucharest Academy <strong>of</strong> Economic Studies
3
Transilvania University <strong>of</strong> Braşov, Faculty <strong>of</strong> Product Design and Environment
simonaclara_barsan@yahoo.com;
georgiasima@yahoo.com;
dsavescu@unitbv.ro;
Abstract: Since intellectual capital is a key factor in company’s pr<strong>of</strong>itability and, on <strong>the</strong> o<strong>the</strong>r hand, knowledge
assets provides a sustainable competitive advantage, it is fundamental to know how to evaluate <strong>the</strong>se intangible
assets in order to be able to <strong>of</strong>fer a support for <strong>the</strong> management’s decision whe<strong>the</strong>r to allocate investments into
achieving <strong>the</strong>m or to continue <strong>the</strong> analysis <strong>of</strong> <strong>the</strong> market for o<strong>the</strong>r assets. It is also important for <strong>the</strong> inventor,
willing to sell his invention, since he or she needs a correct value diagnosis versus <strong>the</strong> alleged market price. In
this paper, <strong>the</strong> authors have decided to present some methods <strong>of</strong> knowledge evaluation, knowledge converted
into industrial property (IP) as part <strong>of</strong> a company’s intangible assets. Through IP registration and technology
transfer, this knowledge ends up producing benefits for its creators, as well as for <strong>the</strong>ir buyers, so, it should be
evaluated properly. We intended to write a practical paper, so we have chosen to present a case study consisting
<strong>of</strong> a technology transfer process <strong>of</strong> 5 knowledge production that we have selected from our portfolio. These are
recuperative and eco-friendly technologies belonging to a research institute and transferred to economic agents
willing to develop <strong>the</strong>ir business by applying <strong>the</strong> above mentioned technologies. Related to <strong>the</strong> 5 recuperative
and eco-friendly technologies, <strong>the</strong> paper presents <strong>the</strong> production costs, <strong>the</strong>ir preparation for transfer stage
(negotiation phase), finally being sold under only one tranche <strong>of</strong> royalties, as well as <strong>the</strong> main advantages <strong>of</strong>
achieving and utilizing <strong>the</strong> technologies, including <strong>the</strong> estimation <strong>of</strong> <strong>the</strong> future pr<strong>of</strong>its for <strong>the</strong> buyer companies and
<strong>the</strong> figures obtained. One <strong>of</strong> <strong>the</strong> most interesting things to be observed is <strong>the</strong> way <strong>the</strong> negotiation phase evolves:
<strong>the</strong> knowledge <strong>of</strong> <strong>the</strong> buyer that is aware <strong>of</strong> <strong>the</strong> technology’s value (since he had all <strong>the</strong> necessary evaluation
means), <strong>the</strong> seller’s lack <strong>of</strong> knowledge <strong>of</strong> <strong>the</strong> seller, willing to sell for less than he could, happy he has found a
buyer and being in need <strong>of</strong> recovering his initial investment (<strong>the</strong> amount <strong>of</strong>fered was an important one, but still
not <strong>the</strong> right one), <strong>the</strong> role <strong>of</strong> <strong>the</strong> technology transfer intermediary in balancing <strong>the</strong> positions and finally in
transferring <strong>the</strong> inventions. Last but not least, we emphasize <strong>the</strong> role <strong>of</strong> funds sustaining knowledge production.
Keywords: knowledge, evaluation methods, intellectual property, technology transfer
1. Introduction
“Intellectual capital is intellectual material – knowledge, information, intellectual property, experience –
that can be put to use to create wealth” (Stewart, 1997). It is formed by its human capital (<strong>the</strong> knowhow
<strong>of</strong> its employees) and by its structural capital (its organization and intellectual property).
The major components <strong>of</strong> intellectual capital are <strong>the</strong> human capital (which is <strong>the</strong> potential <strong>of</strong> <strong>the</strong>
company’s intangible value) and <strong>the</strong> intellectual assets and intangible properties.
The human capital is represented by <strong>the</strong> sum <strong>of</strong> knowledge, abilities and qualities <strong>of</strong> <strong>the</strong> employees <strong>of</strong>
a company, as well as by <strong>the</strong> culture, values and principles developed within that company.
In what <strong>the</strong> structural capital is concerned, it includes <strong>the</strong> whole complex <strong>of</strong> data bases, s<strong>of</strong>tware,
organizational structures, trademarks, patents, as well as o<strong>the</strong>r factors and assets supporting <strong>the</strong>
productivity <strong>of</strong> <strong>the</strong> employees <strong>of</strong> <strong>the</strong> company.
For instance, <strong>the</strong> structural capital is composed <strong>of</strong> <strong>the</strong> capital represented by <strong>the</strong> clients’ portfolio and
<strong>the</strong> organizational capital <strong>of</strong> <strong>the</strong> company, <strong>the</strong> latter being composed <strong>of</strong> <strong>the</strong> company’s innovation
capital (intellectual property, o<strong>the</strong>r intellectual assets) and <strong>the</strong> capital invested in <strong>the</strong> production
processes (Baruch 2001).
A distinctive category is represented by those intangible assets <strong>the</strong> existence <strong>of</strong> which is legally
protected, such as intellectual property: invention or innovation patents, recipes, industrial designs,
utility models, computer s<strong>of</strong>tware, know-how, brands and trademarks, copyright, franchise and
licensing agreements etc. Their acknowledgement and legal protection represents a competitive
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