A Strategic Approach to Managing Intellectual Property

Abstract

Companies learn to manage intellectual propertythrough a dynamic process of revision and refinement.The findings of astudy performed between June 1996 and July 1997 by researchers at the NationalInstitute of Economic and Social Research in London are reported.Theresearch team interviewed fifty-six managers from eighteen large,research-intensive firms in the United Kingdom in order to shed light on thesimilarities and differences in the management of corporate intellectualproperty, focusing on the patent as the aspect of intellectual property mostvalued by research-intensive firms. It was found that corporate intellectual property strategy is the product ofa dynamic process of change: it is the product of the transfer of knowledgebetween different types of people within the firm. It is shaped by the firm'smanagerial hierarchy, as well as its observation of the experiences of othersexternal to the firm.Because a significant degree of contact existsbetween large and small companies on intellectual property issues, theimplications of the findings for small and medium-sized enterprises (SMEs) areexplored. Lack of familiarity with intellectual property issues (such as patents)prevents SMEs from protecting their innovations effectively, but they shouldtreat intellectual property as one of their greatest corporate assets.SMEs may follow the example of large firms by: (1) making staff aware ofintellectual property issues as an everyday management operation, (2)protecting their innovations, and (3) continually revising corporateintellectual property strategy in light of changing market conditions.(SAA)

Keywords: National Institute of Economic and Social Research in London, Intellectual property, Patents, Strategic planning, Legal protection