In 2007, no doubt, we will see an increasing interest in intellectual assets as the new asset class and what it means for innovation, for R&D, for IP professionals but also for those that treat any intellectual property issue as a not-so-high-on-my-priority-list. Why many treat IP like this is remarkable, given that licensing of patents and know how has become an important channel for diffusing knowledge. Well-functioning technology markets can improve the efficiency of innovation processes by facilitating exchanges of patented inventions. Yet there are many impediments to overcome before Intellectual property will be treated as an equal to other asset classes.
In the upcoming blogs, we would like to explore what impediments exist within corporations, organizations, universities and R&D to fully appreciate intellectual property and its importance for innovation (or, again impediment for innovation). What causes IP to be always so low on the corporate priority list. Often one hears what CAN NOT be done with patents and other intellectual property rights:
- IP cannot be valuated properly
- IP cannot assist in improving innovation
- IP cannot be consistently used as a collateral in financial transactions
- IP cannot be appreciated by banks and financial institutions as they do not trust IP enough
- IP cannot be visualized like other asset classes
- IP cannot be easily understood
- IP cannot be monetized
- IP cannot be seen as an effective mean to contribute to recoup R&D costs
As we cover these “cannots” in the coming months, this blogs hopes to provoke debate, invites ideas and suggestions, so as to make 2007 the year of acknowledgment that IP is the New Asset Class and should be treated that way.