Small and Medium Enterprises (SMEs) are the global drivers for technological innovation and economic development. SMEs have high propensity to create unique innovations, and they tend to adopt new technologies faster. SMEs have the potential to contribute to improvements in productivity, competitiveness, and technological progress in the respective areas resulting in economic growth.
Various factors influence SME approaches to Intellectual property (IP) management and also the strategies to improve IP management. The central aspect of IP management is the protection of innovations and physical processes. Innovation helps the firms to be competitive in the market and add capital investments, employment, and growth. If a firm fails to know the exact value of its IPs, the other competitors will copy those offerings without any investments. Copying ideas of an individual firm and investing in the development and bring them into the market is one of the IP management strategies. Apart from this, sound IP management helps SMEs to secure investments and incur all the objectives that can attract the buyers, and meet litigation risks. SMEs tend to work with external partners that enhance the firms to reduce the gaps and gain experience because their primary objective is to attract the existing customers in the market. The collaboration includes the risk of sharing information to others and requires reasons for sharing intellectual assets. The innovative SMEs should develop resource-effective strategies that can protect and manage IP. Innovative SMEs collaborate with technological knowledge sources such as universities or research centers which helps the firms when innovation is related to science.
Collaborative innovation is eminent for SMEs to overcome the disadvantages like lack of resources and scale, and fill the gaps. SMEs and bigger firms are both benefited from the flow of interactions, which can help them to increase product development, innovative process, and be quick in implementing new technology. Attracting foreign technology partners and management of innovation networks is also considered as a key factor for growth and success of innovative SMEs. Their exposure in the international market can increase their innovation, and interactions of individual firms act as powerful accelerators of internationalization. Using customer feedback and incorporating the necessary changes can enable firms to provide products that are more customer-centric.
Innovative SMEs can achieve success with the collaboration of a wide range of public and private entities, reducing the time for innovation, increasing the scope of innovation, and promoting products. Although the exchange of information has considerable risks, smart SMEs can still achieve increased operational efficiency and productivity.