Survival analysis for technology credit scoring adjusting total perception

In the area of technology financing, the scorecard model is one of the most popular tools used to help organizations decide whether or not to grant loans to applicant firms. However, the scorecards are often filled‐in based on the evaluator’s total perception rather than the individual attribute scores of which the scorecards are composed. Misleading results may occur when reversely scored individual attributes that are based on the total perception are used in the default prediction model. This paper proposes a survival model that takes into account not only the time to default but also the total perception scoring phenomenon. This proposed approach is expected to contribute to decision‐making in various areas of technology, such as R&D investments, alliances, transfers, and loans.