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Innovation Management Assignment (pdf)

   

Added on  2021-04-17

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Running Head: MANAGEMENT AND INNOVATION1Intellectual Property Management in an Open InnovationNameCourseDate

MANAGEMENT AND INNOVATION 2Intellectual Property Management in an Open InnovationIntroductionOver the past decade, the Research and Development (R&D) arena has witnessed a surging proliferation in technological advancement. Top on the list has been rise in development of intellectual property (IPR) to produce advanced and peculiar goods and services. The number of companies filing patent rights has been increasing steadily, which compels companies to depend on the third-party IP rights to facilitate innovation. Hence, it is imperative for corporate organizations to incorporate expert services of research and technology development (RTDs) into their strategic management of IP to develop innovative solutions. This paper provides an overview on the significance of open innovation to small and medium-sized enterprises (SMEs) by accentuating factors that should be taken into consideration for sound management of IP, particularly when innovation is through an open innovation strategy.Concept DescriptionIn an open innovation model, building innovative solutions relies on internal and external sources of information. Through cooperation with R&D agents, this approach has certain merits, which include risk sharing, cost reduction, shorten time for innovation, and enhanced access to markets (Chesbrough and Ghafele, 2014). Multi-invention factor refers to covering a given technology with by a number of IP rights from different owners. This meansthat no company enjoys monopoly right over a particular technological product. Despite the high cost of innovation and R&D, SMEs quality performance will be on upward trajectory. The trend has been the same with research and technological organizations (RTOs). Due to the existential competitive advantage, huge companies have resorted to subcontracting R&D functions to smaller firms, in pursuit of integrating external information

MANAGEMENT AND INNOVATION 3with internal innovation system. Chesbrough and Ghafele (2014) observe that this playbook has strengthened collaboration between firms to facilitate racy innovation and consolidate resources. Downrightly, this approach presents opportunities for RTOs and SMEs to fill their resource gaps by putting specific technological expertise into sale. Concisely, open innovation model has the capacity to enhance licencing, foster strategic alliances between RTOs and SMEs, aids in R&D contracted by huge companies and promotes research cooperation between RTOs and SMEs. Chesbrough and Ghafele (2014) attest that open collaboration fills knowledge gaps for RTOs and SMEs that have advanced technological fields but lack expertise. IP plays a critical role in the concept of open innovation by inhibiting traditional defensive techniques employed by most companies. Initially, most companies were forging patents with aim of blocking potential competitors and enjoying monopoly. Patent protection was to enable companies to sell their solutions as well as facilitate their safe entry into R&D partnerships with no— or minimum —risk. Leon and Donoso (2017) acknowledge that patents are crucial to innovation process because they can conceal and equally disclose. Joint agreements done under the umbrella of R&D partnerships are supervised by IP protection to allow smooth transfer of technology via licenses. Essentially, patent protection enables the company to recover the cost of R&D by selling intangible assets, which by extension is beneficial in terms of market growth. Concept AnalysisDue to the vulnerable nature of open innovation, a strong IP management is central to the success of the joint project. While sharing important information, expertise, and technological knowledge has some inherent benefits, such deals are prone to leakage of intangible assets, and free riding-problem, especially if there is no strong management in

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