Innovative Project Risk Premiums Calculation Scheme used for the Assessment of the Discount Rate

The article reveals the particulars of the valuation of intangible asset cost or economical effect generated by its utilization as a part of innovative projects. Basing on IP valuation generally accepted practice, the authors give grounds for the necessity of the detailed investigation of current and prospective state of business environment and specific risks, inherent to innovative projects, as well as the reasonability of application of flexible (adjusted) discount rate in assessment of expected financial inflow, generated as a result of implementation of state-of-the-art technology. The authors put forward a multipurpose scheme for the valuation of risk premiums for further assessment of basic discount rate adjusted to the specific innovative project, or a certain stage of the project. Proposed scheme involves key risk categories, associated with the innovative project, combined in scenario sets serving as base for the assessment of final overall risk premium. Suggested method aimed not only at simplification of project approval assessment process conducted at pre-investment stage, but also will let the user form the conceptual base for future management of intangible asset, as a part of the project, taking into account all possible risks and hedging measures

Keywords: intangible asset; intangible asset valuation; risk assessment; risk premium; innovative project; technology readiness level; discount rate


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