Management of Intellectual Property by SMEs

As intellectual assets and the ability to create value from them increases, so does the ability to reap the economic gains from the assets. In certain cases, this can be achieved through the use of intellectual property rights. Innovative and young SMEs can usefully employ IP as collateral in obtaining finance in cases when they cannot rely only on their tangible assets and do not yet have reputation or brands or other intellectual assets for use in raising capital. Informal ways of protecting IP are less costly, easier to control and use and they may be embedded in the routine working practices of the firm. However, for many SMEs improved informal IP management and protections skills can also be a 'first step' on the ladder towards an effective IP strategy that includes the utilisation of formal IPR protect ion. Informal IP management and protect ion involve a wide variety of different types of business process activities carried out by SMEs. Such a wide inter face creates opportunities to integrate IP strategy related is sues more effectively into the SME policies. Linking IP related support services to the life-cycle of the innovation and business processes could be an effective way to communicate these issues to the SMEs, as would be providing access to IP knowledge, simplification of administrative procedures, adequate fees, training and capacity building.