Those who undertake a research project often find they are unknown to the differences between Qualitative Research and Quantitative Research methods. Many inappropriately think the two terms can be used interchangeably.

So what is the dissimilarity between Qualitative Research and Quantitative Research?

Qualitative Research

Qualitative research is expressed in words. It is used to recognize concepts, thoughts, or experiences. This type of research helps you to gather in-depth insights on topics that are not well acknowledged. Common qualitative methods incorporate interviews with open-ended questions, considerations described in words, and literature reviews that explore concepts and theories.

Quantitative Research

Quantitative research is demonstrated in numbers and graphs. It is used to test or validate theories and assumptions. This kind of research can be used to create generalizable facts about a topic. Common quantitative methods incorporate experiments, observations recorded as numbers, and surveys with closed-ended questions.

When to use qualitative vs. quantitative research

A rule of thumb for determining whether to use qualitative or quantitative data is:

Use quantitative research if you would like to confirm or test something (a theory or hypothesis)

Use qualitative research if you would like to understand something (concepts, thoughts, experiences)

For most research topics, you can select a qualitative, quantitative, or mixed methods approach. Which type you should choose depends on other things, either you’re taking an inductive vs. deductive research approach; your research question(s); whether you’re doing experimental, correlational, or descriptive research; and practical considerations such as money, time, availability of data, and access to respondents.

Value from an IP asset is obtained through direct exploitation when a sale and licensing of the IP or by not exploiting an IP asset (i.e., by merely owning it), for instance, by reducing the negotiating power of customers, offsetting supplier power, mitigating rivalry, raising barriers to entry by competitors, minimizing the threat of substitutes, etc.

 What are the factors that influence IP Valuation?

1.      Standard of value

The most often used standards of value are Fair market value and Fair Price Value. It is essential when undertaking an IP valuation exercise. Fair market value (Market value) can be described as the price at which an asset or service passes from an interested seller to a buyer. It is presumed that both buyer and seller are rational and have a reasonable knowledge of relevant facts. Fair value (Fair price) is seen as suitable for use in post-transaction purchase price allotment. It is established on the belief that market candidates would use when pricing the asset. However, fair market value seems to be more relevant when utilizing the premise of value in exchange, and fair value is often based on the premise of value in use. As mentioned earlier, IP valuation is a process to evaluate the fair market value of an IP asset.

2.      Purpose of valuation

In order to determine the premise for the calculation of value, it is necessary to understand the purpose of valuation. For example, valuation from the perspective of market value and investment would be completely different. In commercial situations, market value is the suitable premise. International Value Standards describe market value as "The estimated amount which a property should exchange on the day of valuation between an interested buyer and a seller in an arms-length transaction after proper marketing wherein the parties had each proceeded knowledgeably, prudently, and without compulsion."

3.      Valuation method(s)

The methodology applied and assumptions made while applying a particular patent valuation method affects the value of IP assets. A market method is the most helpful form of valuation. The cost method is usually refrained by companies since it ignores the novel characteristic of IP. This method is effective for R&D costs.

4.      Nature and strength of IP asset

The competitive strength of an IP asset governs the comparative valuation that it shall hold in the market. The aspects such as customer responsiveness and market circulation of a product or availing service determine its IP value. The threat of new entrants and substitutes influences the value of IP assets.

Reasons to conduct a valuation of your IP assets

Sale, licensing, or exchanging of Patents

Directing funds towards R & D

Transfer Pricing

Valuation in case of infringement

Valuation for collateral with the bank or raise     funds for venture capitalists

Companies' financial status