Tuesday, December 20, 2005
Intellectual Property, The Little Asset That Could
This article plays up my theory about the New American Business Model.
As we see a huge shift to Web 2.0 applications, I'm already seeing a "land rush" of sorts for intellectual property (IP) that allows this.
What is the one thing that has true value for a company in the States, and it loses its value when/if it's outsourced?
From BusinessWeek Mining the vein of great ideas
In recent years sophisticated investors such as hedge funds and mutual funds have been seeking an edge in the market by looking at R&D through the prism of patents.
"Patents are an output measure rather than an input measure like R&D," says Patrick Thomas, principal at 1790 Analytics.
A good grasp of the quality of a company's patent portfolio is valuable information to investors. But that isn't enough. Companies need marketing, production, and other skills to capitalize on those ideas.
Another intriguing indicator of a company's innovative prowess is the money it earns from its patent portfolio through royalty and licensing fees.
Today, wealth is created by the impact of new ideas and other intangible assets, like patents.