Skip to content
Capitalism Lab Taking Business Simulation to a New Frontier
Capitalism Lab

Intangible Asset: Technology

The corporate balance sheet carries an asset called Intangible Asset: Technology. It gives a tech company a fair market value — and with it the ability to raise funds for continued R&D by issuing new shares.

A corporate balance sheet showing Intangible Asset: Technology

How the value is determined

Part A — technology at or above the market top

When the company holds a technology equal to or higher than the current top technology on the market — the Top Tech. column on the Technology page of the Corporate Detail Report:

value = <a constant amount> × (company's tech level − top tech) / top tech

Part B — new inventions not yet on the market

value = <a constant amount> × (years to invent the product with a single R&D unit)

Neither value lasts. Both decline — and can vanish entirely — once other companies start selling products built on the same new technology.