Harnessing IP: strategies for SMEs
New brands and new designs spring up almost on a daily basis in the market. Small and medium-sized enterprises (SMEs) are a driving force behind these innovations. SMEs represent 90 percent of enterprises in most countries. Despite their importance to the economy and the potential offered by the IP system for enhancing SMEs’ competitiveness, SMEs often underutilise the IP system, and their creative and innovative capacity is not always fully exploited.
This is because many SMEs are not aware of the IP system or the protection it can provide for their inventions, brands and designs. To many SMEs, IP is still an unknown concept; they think that the game can be understood only by experts. SMEs are faced with several questions. Why should they pay attention to IP? How can they survive in the international trade arena? What role can the government play in making SMEs more competitive? How can intellectual property generate wealth in the business?
Relevance of the IP system to SMEs
There is a need for greater understanding on the part of SMEs. According to United Nations Industrial Organization (UNIDO) estimates, there are approximately 350 small and medium-sized industry clusters in India. Taking full advantage of the IP system enables companies to profit from their innovative capacity and creativity, which promotes and aids further innovation.
Forward-looking enterprises must extract the potential value of their IP and use it effectively in their business strategy. SMEs with a strong technological base, international business outlook, competitive spirit and willingness to restructure can withstand the present challenges and come out with their own contribution to the Indian economy. IP protection helps:
