Capturing value from Intellectual Property (IP) in a global environment

TY - CHAP

T1 - Capturing value from Intellectual Property (IP) in a global environment

AU - Alcácer, Juan

AU - Beukel, Karin

AU - Cassiman, Bruno

PY - 2017

Y1 - 2017

N2 - Globalization should provide firms with an opportunity to leverage their know-how and reputation across countries to create value. However, it remains challenging for them to actually capture that value using traditional Intellectual Property (IP) tools. In this paper, we document the strong growth in patents, trademarks, and industrial designs used by firms to protect their IP globally. We then show that IP protection remains fragmented; the quality of IP applications might be questionable; and developing a comprehensive IP footprint worldwide is very costly. Growing numbers of applications are causing backlogs and delays in numerous Patent and Trademarks Offices and litigation over IP rights is expensive, with an uncertain outcome. Moreover, local governments can succeed in transferring value to local firms and influencing global market positions by using IP laws and other regulations. In essence, the analysis shows a global IP environment that leaves much to be desired. Despite these challenges, there are successful strategies to capture value from know-how and reputation by leveraging an array of IP tools. These strategies have important implications for management practice, as we discuss in our concluding section. Global companies will need to organize cross-functional value capture teams focused on appropriating value from their know-how and reputation by combining different institutional, market, and nonmarket tools, depending on the institutional and business environment in a particular region.

AB - Globalization should provide firms with an opportunity to leverage their know-how and reputation across countries to create value. However, it remains challenging for them to actually capture that value using traditional Intellectual Property (IP) tools. In this paper, we document the strong growth in patents, trademarks, and industrial designs used by firms to protect their IP globally. We then show that IP protection remains fragmented; the quality of IP applications might be questionable; and developing a comprehensive IP footprint worldwide is very costly. Growing numbers of applications are causing backlogs and delays in numerous Patent and Trademarks Offices and litigation over IP rights is expensive, with an uncertain outcome. Moreover, local governments can succeed in transferring value to local firms and influencing global market positions by using IP laws and other regulations. In essence, the analysis shows a global IP environment that leaves much to be desired. Despite these challenges, there are successful strategies to capture value from know-how and reputation by leveraging an array of IP tools. These strategies have important implications for management practice, as we discuss in our concluding section. Global companies will need to organize cross-functional value capture teams focused on appropriating value from their know-how and reputation by combining different institutional, market, and nonmarket tools, depending on the institutional and business environment in a particular region.

U2 - 10.1108/S0742-332220170000036006

DO - 10.1108/S0742-332220170000036006

M3 - Book chapter

SN - 978-1-78714-277-0

T3 - Advances in Strategic Management

SP - 163

EP - 228

BT - Geography, Location, and Strategy

A2 - Alcácer, Juan

A2 - Kogut, Bruce

A2 - Thomas, Catherine

A2 - Yeung, Bernard Yin

PB - Emerald Group Publishing

ER -