A Risk-Adjusted Patent Valuation Framework for Real Estate Innovations in Malaysian Universities

Abstract

The valuation of patents has become a critical concern for universities seeking to commercialize research outputs and enhance their contribution to national innovation systems. This challenge is particularly pronounced in the real estate sector, where technological innovations such as smart building systems, sustainable construction methods, and digital property management solutions are subject to heightened uncertainty, regulatory complexity, and market volatility. Existing patent valuation approaches—primarily cost-, market-, and income-based methods—were largely developed for industries with predictable commercialization pathways and therefore struggle to capture the unique risk profile of real estate-related patents generated within academic institutions.
This study proposes a risk-adjusted patent valuation framework tailored to real estate innovations originating from Malaysian universities. Drawing on intellectual capital theory and a structured analysis of market, technological, regulatory, and commercialization capability risks, the framework embeds risk directly into valuation logic rather than treating it as a post hoc adjustment. The framework advances existing valuation practices by aligning valuation mechanisms with sector-specific realities and institutional conditions.
The contribution of this paper is threefold. First, it extends the intellectual capital literature by theorizing risk as a structural dimension of patent valuation. Second, it offers a methodological contribution through a risk-embedded valuation framework suitable for university-generated patents. Third, it provides contextual insights from Malaysia, an underrepresented setting in patent valuation research. The framework supports more informed commercialization strategies and strengthens the strategic role of universities in real estate innovation.