Theory and a case study of innovation management in technology start-up company, which is organized like a virtual enterprise, is described. The theory is based on the understanding of electronics industry as a composition of specific information and material flows. The product analysis based on the model leads to the business plan of a virtual enterprise. IPR management and valuation is the key issue in this approach. A short theoretical background for the issue is given. The theory description consists of a list of definitions and a diagram showing the relations between them.