Know-how finance means financing the accumilation of business secrets based on experience or knowledge from research and development (a.k.a know-how)
In the era of information
information itself and the knowledge to interpret it became the main value so a
successful enterprise derives competitive advantages not just from human
resources but unique know-hows. A know-how can be technology, production
process, knowledge about the business sector or products, business practices or
managing certain company functions according the business sector.
Financing is a long
term process because the development of scientific research and business
practices needs time and a time limit cannot be assigned. As in enterprise
financing sources coming from the owner or partners are options. Loan activity
is not targeted to this area but personal schemes are conceivable.
When cooperating with
an educational institution bugdetary supports are available for the research
projects wich in the end result in a know-how that can be applied by the
company.
If we don't want to
explore this knowledge personally then know-hows can be bought as many successfully
examples operating franchise systems show us. In the case of franchise licenses
know-hows and brands are sold to an independent enterprise in which case bank
loans or investor capital can be used.
Tags: Know-how, innovation, loan, profit, technology
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Dr.
Tibor Palánkai
economist,
university professor, academic
(Hungary,
March 1st, 1938) Award winning Hungarian economist, university professor,
member of the Hungarian Science Academy. Renowned researcher of European
integration and international division of labour. Deputy rector of Karl Marx
Econonim University between 1977 and 1983, rector of Budapest Economic
University (successor of Karl Marx University) between 1997 and 2000)
Further information: http://en.wikipedia.org/wiki/Tibor_Pal%C3%A1nkai
