SOTA Review

Innovation, open innovation and intellectual property rights: firm size differences. SOTA No 21


Associated Themes
  • Innovation

With growing interaction among firms in the innovation process, the need for efficient protection of intellectual property rights (IPR) also increases. The high costs and lengthy processes associated with patenting call for firms to use other methods of protecting their intellectual property (IP). The low costs and high revenues associated with the use of trademarks entice the adoption of this measure. For SMEs however, recent evidence questions the long-term benefits of trademarks, and suggests that industrial designs may be a more efficient form of IP protection. There is little evidence for or against using copyright, possibly due to difficulties in measuring this IPR. As product cycles are shortening, firms increasingly protect IP through speed-to-market and secrecy. However, more research is needed as to how secrecy relates to more formal methods of IP protection.