Businesses not making the most of their IP: UKIPO report
UK businesses are not making the most of their ideas and innovations, and can only do this by identifying and putting a value on their IP, according to a report.
The report, commissioned by the UK Intellectual Property Office (IPO), was released earlier today, September 27.
Called “Hidden value: a study of the UK IP valuation market”, the report stated that 70% of a typical company’s worth lies in intangible assets, while 13% of companies have never undertaken a valuation.
The report cited the five most common reasons why companies have not done so, including a lack of awareness, limited ability to use IP to raise finance, and other more pressing business priorities.
“Over a third of the respondents who stated that they had not had an IP valuation had previously considered getting one. The remaining 65% had not considered obtaining an IP valuation and no one had told them they should have one,” the report read.
“This appears to confirm a lack of awareness of valuation benefits,” it added.
More than 250 individual primary contributions were analysed, using a mixture of interviews performed by the researchers and online surveys distributed by the IPO.
Over 70% of those that have had valuations admitted they have had a valuation only once.
The study looked at companies and valuation firms to determine the statistics. Of the firms that undertake valuations, more than 25% said they undertake ten or fewer a year.
“Compared with tangible asset-related practices, IP valuation volumes appear to fall below what might be expected, given the substantial investment directed towards intangible asset creation,” the report concluded.
“Whilst additional available volumes are difficult to quantify, opportunity-led IP valuations appear to have the best prospects for growth in the near term.”
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