Intellectual Property and Small to Medium Enterprises

by Webmaster | Mar 29, 2022 | 0 comments

Each of the millions of small and medium-sized enterprises (SMEs) that operate across the globe every day started with an idea that took shape in someone’s mind and made its way to market.[1]When nurtured and enriched with ingenuity, know-how and flair an idea becomes an Intellectual property (IP) asset that can drive business development, economic recovery and human progress[2].SMEs play a major role in most economies, particularly in developing countries such as Zimbabwe.

Many SMES may be unaware that they hold IP or that it has value. This means, many are missing out on opportunities to improve their business and grow. Intellectual property generally refers to creations of the human mind, which among others include Patents [3], Trademarks [4], Copyright[5] and Related rights[6], industrial designs and geographical indications. In today’s knowledge driven economy these intellectual products (intangible assets) encourage innovation and creativity which in turn spurs economic development and prosperity.

Key challenges with IP and SMES
IP and its value are often not adequately appreciated and yet is a key consideration in day to-day business decisions. New products, brands and creative designs appear almost daily on the market and are the result of continuous human innovation and creativity. Some of the challenges faced by SMES include;

No mechanisms of promotion and protection of IP
Insufficient information on the relevance of IP in day-to-day business, high costs associated with obtaining and enforcing IP rights, perceptions that the IP system is esoteric, too cumbersome and time-consuming (Gee, 2007). These are among the reasons why many SMEs are sometimes slow to protect their IP assets
Lack of clarity about its relevance to their business strategy and competitiveness, and of their finding the system too complex and expensive to use.
The costs of getting IP protection may be perceived by many SMEs as exceeding the potential benefits to be obtained from protection, particularly considering that a significant part of the costs may be incurred before the product has reached the market and that lenders, investors or government programs rarely provide financial support for the protection of IP rights.
limited access to the necessary human resources and/or accessible legal advice make use of the IP system complicated and decreases the chances of success in the application process for registration/grant of IP rights.

The Benefit of an Innovation Hub to Small to Medium Enterprises
In a knowledge-based economy, competitiveness of enterprises, including SMEs, is increasingly based on ability to provide high-value-added products at a competitive price. To become and remain competitive, SMEs need a coherent business strategy to constantly improve their efficiency, reduce production costs and enhance the reputation of their products by: The Hub thus offers SMEs the following opportunities;