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.
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