IT'S TIME TO THINK DIFFERENTLY ABOUT R&D ASSETS AND THE CTO'S ROLE

While accounting for the tangible assets is easier, it has not historically captured the value of the most important assets of today's growth companies - the intangibles of R&D investments, brand equity, employee savvy, smarter business models, and customer loyalty. Companies need to change how they traditionally manage the fruits of R&D as complex technical outputs, to intangible yet transparent corporate assets. And they need to change how they account for such assets - historically, as depreciable goodwill - to assets with fair market values that must track to market changes when value is impaired. These changes lead to the evolution of a new model for IP development and commercialization, one that is focused on the delivery chain and asset value. And they also imply that Chief Technical Officers could evolve to Chief Asset Officers - with P&L visibility, responsibility and accountability.