Intellectual property is increasingly important in today's knowledge-based economy. Knowledge underpins business performance and competitive advantage. For small and medium enterprises specifically, investing in research, technology, management practices, and product design helps them compete globally. Intellectual property adds value at every stage of business from idea generation through commercialization by protecting inventions, brands, and creative works. Managing intellectual property rights is crucial for startups, growing companies, and established businesses alike.

1. The Importance of Intellectual
Property (IP) in the various stages of
business cycle
Compiled by A Srinivasa Rao
NIFT, Hyderabad

2. Spotlight is on knowledge
in today’s economy
• Factors of production: Land, Labor,
Capital, Intangibles (Knowledge)
• Knowledge as useful Information (or
Service)
• Information as a “Public Good”
• Information as Property

3. Centrality of Knowledge
KNOWLEDGE
underpins
PERFORMANCE

4. Knowledge Capital
Knowledge
Capital
Labour
Labour
Pre -industrial Industrial era
era
Capital
The « knowledge
Knowledge economy »
Labour

5. US COMPANIES’ INTANGIBLE
ASSETS AS % OF TOTAL ASSETS
Intangible assets
Physical assets
1982 2000

6. SME Competitiveness (I)
• In a knowledge-based economy, competitiveness
of enterprises, including SMEs, is increasingly
based on ability to provide high-value-added
products at a competitive price
• Globalization and trade liberalization has made it
crucial for most enterprises, including SMEs, to
become internationally competitive even when
operating wholly in the domestic market

7. The challenge of adding value
in today’s economy
• Raw materials/Inputs: Processing (Value
addition) = Value added output/component;
product; sale; Profit
• Value addition: Better: Functional/technological
or aesthetic/non-technological;
Rational/Emotional (More for Less)
• Price; access/availability; consistency
• Individual, Enterprise (legal person), Chains,
Networks; consortia; Open Innovation
(Industry-Government-Academia)
• Ownership vs. access to knowledge

8. SMEs Competitiveness (II)
• To become and remain competitive, SMEs need
a coherent business strategy to constantly
improve their efficiency, reduce production costs
and enhance the reputation of their products by:
– Investing in research and development
– Acquiring new technology
– Improving management practices
– Developing creative and appealing designs
– Effectively marketing their products

9. Everything Depends on 5 Key Choices:
• Choosing the right business to be in
• Creating the right strategy
• Building the right systems
• Designing the right organization
• Getting the right people

10. A business is a combination of ...
• Technology in the product or service,
• Technology used to make the product or
provide the service,
• Features of the product or service, and
• Customer needs met by the product or
service,
… that creates a potential or real economic
relationship between a buyer and a seller.

11. Understanding the Process of
Innovation
The Process/Steps of Innovation
Pre-IPO
$
• Viable
Expansion • Market acceptance
• Legal Entity • Heading to IPO or M&A
• High Growth
• Bright Idea • Founders = Mgt Team
• Head Count
• Experimental • Minimal Revenue Start-Up • Multiple Cycles
• Research • Slow Growth
• Support Functions
• Business Plan
• Administration
• Proof of Concept Seed
• Marketing
Idea / Concept • Revenue Growth
Time

12. The Needs of Each Stage
•Recruitment
•Business
•Corporate and
Development
Secretarial
•A & P
$ •Financial
•Market Access
•Training
•PR and Marketing
•Networking
•Business Expansion
•Business Plan Development
•Prototype/ POC •International support and
•Project Management Mkt. Access
•Business Premises Start-Up •Diversification strategies
•Project Management and support
•Management Training •Recruitment
Seed •Training and Incentives
Idea / Concept
Time
IP Management Needed in all stages

13. Basic Message
IP adds value at every stage of the value
chain from creative/innovative idea to putting a
new, better, and cheaper, product/service on
the market:
Patents / Trademarks/ GIs
Utility Models/Trade secrets Ind. Designs/Patents/Copyright
All IP Rights
Patents / Industrial Designs/
Utility models Trademarks/GIs
Invention
Commercialization
Marketing
Financing Product Design Exporting
Literary / artistic Licensing
creation
Copyright/Related Rights
All IP Rights

14. Thank you