Industrial Property in Innovative Economy
Managing Innovation:
Economic Aspects of Industrial Property
Kraków, 2-3rd September 2010,
Jagiellonian University, Collegium Novum
The Role of Intellectual Asset
Management in Business Planning
Iain Russell
Chief Executive
Intellectual Assets Centre
Glasgow Scotland
Is IA Management a strategic tool?
• Organisations today more dependent than ever
before on the synergy between their tangible and
intangible resources
• The effective management of this synergy frequently
forms the basis for competitive advantage
• By using techniques to analyse how to optimise this
synergy organisations can increase their value
creation and establish suitable systems for
performance management for all their deployed
resources
Source: Roos, Pike and Fernstrom Managing Intellectual Capital in Practice 2005
©Intellectual Assets Centre 2010
Types of Strategic Resources
Owned or Controlled
by the Firm
Owned or Controlled
by the Firm
Reproduced with the Kind permission of G. Roos 2008
Owned or Controlled
by the Other Party
Owned or Controlled
by the Firm
Owned or
Controlled by the
Employee
The utilisation of resources
With different behaviour
Industrial
Economics
Reproduced with the Kind permission of G. Roos 2008
Network
Economics
Knowledge
Economics
Strategy vs Business Processes
Planning Level
Architecture Level
Implementation
Level
Strategy
Business Model
Business Processes
Strategy vs Business Models
• A Strategy uses the context, rationale and
market position of the business to state its
intent
• Tactics show how the firm will implement the
strategy
• A Business Model investigates the value of the
business proposition to the customer
©Intellectual Assets Centre 2010
Calculated rate of return on the innovation types
Calculated by Helin, K. and J. Lehtonen based on data from Keeley
and shared in “VOITTO: About Business Plan and Innovation”, Presentation
The objective of this type of IA-based intervention
is to:
• Reduce Risk (Lower Discount Rate in NPV
Calculation)
• Enhance Long-term Value of Business
(Drive Future Growth Value)
• Enhance Cash Flow (Profitability)
• Accelerate Cash Flow (Growth)
Source: Dr V.S.R. Krishnaiah, Snr Tech Director, NIC
Tangible / IA Curve Dynamics
Courtesy of MatrixLinks 2010
IA Fundamentals : What’s a value stream?
•Stream of value or benefits
to a stakeholder
•Most usefully expressed as a
curve over time
•Can be denominated in
financial and non-financial
terms
•Measured from a defined
perspective
Generic Curve shapes
1. Constant Growth
2. Accelerating growth
3. Constant decline
4. Accelerating decline
5. Straightline
6. Life cycle
Courtesy of MatrixLinks 2010
SME Example Simulation
• Alpha Co-markets specialized software to oil drilling sector
• Software has algorithms to enable marine drilling rigs to
optimize cost effectiveness of rig performance
• No patents- uses copyright protection on various software
packages
• Earlier 2010 purchased a bundle of IA from Beta CoAustralian company which supplies oil rig management
services.
• Beta filed patents in 2005 when it was thinking of entering US
market (has 6 US patents, plus documented know how and
other codified info)
• Entering US market has potential to increase revenues by £2m
pa within 2 years
Example courtesy of MatrixLinks 2010
Strategic questions
• In addition to existing revenues, what other value
stream opportunities should our case study co’s
consider? In particular what value stream
opportunities could potentially arise?
• For each value stream opportunity identified what
complementary business assets or other IA might be
necessary to enable additional value streams?
• What opportunities are there for influencing the
shape of the existing value streams
Courtesy of MatrixLinks 2010
Examples of analytical methods for
optimising the tangible / intangible mix
• Methods usually involve some visualisation of how
value extraction process
• Methods often involve strategic dialoguing amongst
the senior team in an enterprise
• Examples include the IC Navigator (Roos, Pike and
Fernstrom, 2005), the InCas process (Frauenhofer
Institute et al, 2007) and Optimising IA/Tangibles
synergies (MatrixLinks 2010)
©Intellectual Assets Centre 2010
Innovation Outcomes
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Implemented a plan of some 21 commercialisation activities over
the course of Project VIA, including forming strategic partnerships,
producing publicity material, and submitting commercial proposals.
The delivery of training and advice sessions on energy efficiency
and renewables for the local community.
The development of 4 new renewable energy product offerings.
IA Outcomes (IPRs)


£2.3M additional investment, with the company modifying its business model to that of an IP company with a core
manufacturing capability.
A completely new business structure to carry out R&D and foster the creation of new spin out company to protect
and exploit the intellectual property arising from inventions.

Clarified Intellectual Property (IP) ownership issues associated with the company’s website
More widely asserting its Intellectual Property (IP) rights, in particular addressing IP protection in contracts, thereby
enhancing the relationship with a key customer and developing a distributor agreement for wider market access.

Preparing two patent applications to protect early stage inventions.

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Several new patent applications to protect new inventions and concepts, and a technology demonstrator launch
well ahead of the original schedule.
The development of a new commercialisation process that will protect the company’s IP during the development of
new products.
The process of identifying and asserting Intellectual Property (IP) rights is now established and continues in use as
the company grows its business and develops new products. Further, it provided the company with the confidence
to negotiate and assert its rights associated with a new collaborative product development, for which it has secured
for itself over £100k of funding from the Technology Strategy Board.
Wider use and assertion of intellectual Property (IP) rights in the design of its web-site, case studies’ literature,
installation and design drawings, and contract clauses.
Market Development Outcomes

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New staff were recruited as a result of company growth.
Revenue growth of 20% during difficult economic times, leading to
2 new full time jobs.
Securing funding for its projects and ideas – an EU bid has been
accepted for funding in March 2010 for €1.8M.
The award of two important new projects, which together with an
improvement in the market for, will lead to a 30% increase in
turnover for 2010, improved profitability and a net creation of 5
new jobs since joining Project VIA.
Contact us:
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Glasgow G3 8EP
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