Development of a valuation system of technology for the enhancement of innovation in Indonesia

PURPOSE: Innovation as intellectual capital is the main capital to improve the economy and welfare for developing countries. In this article, the researchers focus on discussing how this Patent valuation system is built in developing countries, In this article, the word technology here is patent-protected technology especially in Indonesia. The primary purpose of the patent assessment in this article is to provide loans, or in Indonesia, it is referred to as a patent fiduciary. This research is also expected to provide a solution to the decline in Indonesia's GII rank in 2021. The researchers describe how this technology valuation relates to fostering innovation in Indonesia. DESIGN/METHODOLOGY/APPROACH: This research applies a descriptive analytical method. The researchers analyze existing innovation conditions through an intellectual property management approach and theories in intellectual property. The researchers construct the formation of a valuation system in Indonesia and form a valuation linkage scheme and technology improvement in Indonesia. FINDING: The researchers map a valuation system consisting of integrated subsystems and describe how these subsystems work and are integrated with each other. Furthermore, it is also found that valuation has a positive correlation with the increase in innovation in developing countries, especially for innovation-based startups and small and medium-sized companies in Indonesia. RESEARCH LIMITATION/IMPLICATION: The limitation of this research is the technology valuation process using three conventional methods. It still allows the emergence of new methods and this research is based on Indonesian characteristics, although this research can be applied in developing countries in ASEAN region which have the same characteristics as Indonesia. ORIGINAL/VALUE: The novelty values contained in this article, firstly on the formation of a valuation system that can be adopted by Indonesia which does not yet exist, The technology valuation system can also apply in several developing countries, especially countries in the ASEAN region which will focus on the development of innovation and technology. Secondly, the valuation system and fiduciary implementation can indirectly increase national innovation.