post Tuesday October 29, 2013
In order to find out whether investing in intellectual property pays off, a group of analysts from the Intellectual Property & Science business of Thomson Reuters examined the financial performance of the organizations in their top 100. They compared the Thomson Reuters Top 100 Global Innovators to companies in the S&P 500 index. The result of the comparison is that the 100 Global Innovators outperform the companies in the S&P 500 index in the past three years.
The Thomson Reuters Top 100 Global Innovators are rated based on their patent portfolios. The use of patent portfolios for this ranking can be seen as an indirect tool to quantify innovation. A prerequisite of this list is that participating companies understand the connection between innovation, protection and commercialization.
The results of the analysis show that the most innovative companies that invested in protecting their ideas outperform other companies when it comes to annual stock price gains (with over 4%), average revenue growth (with 2%) and in average R&D spend (with 8.8%).
In general, the most innovative companies spend a greater percentage of their revenue on R&D than other companies, 5% of overall revenue in comparison to 2.1%.
To conclude, this analysis shows that companies that invest in their intellectual properties are more successful than their counterparts.
There are several ways in which a company can profit from its intangible assets, including its intellectual properties. The first step is to identify the intangible assets within the companies. This is followed by the quantification of the value of these assets. Through the third step the company learns how to monetize the value of its intangible assets. IPR plaza is specialized in intangible assets and can help your company to understand its intangible assets. By doing so, IPR Plaza supports you to drive growth, to improve performance and to enhance and protect the value of your enterprise.
Source: Reuters
Image source: FreeDigitalPhotos.net
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