VALUATION AND MANAGEMENT OF PATENTS BY KNOWLEDGE-INTENSIVE ORGANISATIONS IN SOUTH AFRICA

Abstract

Intellectual property (IP) is important for the success of organisations in the knowledge-based economy as a basis for competitiveness and growth. The increase in commercial demand for IP and in transactions involving IP has led to improved practical methods for patent valuation. The application of advanced patent valuation methods has transformed traditional IP strategies of modern organisations. South African companies are often criticised for under estimating the value of their IP and having vague IP strategies. This study explores the current practices in the valuation and management of patents by knowledge-intensive organisations in South Africa in order to determine competitive IP strategies. It was found that organisations that use less sophisticated valuation methods for their patents have uncompetitive IP strategies. Modern leading firms, on the other hand, predominantly use advanced valuation methods for their patents, systematically build internal capacity in innovation activities and have a variety of creative ways to extract value from IP.