The role that Intellectual Property plays in companies that develop innovative technologies is becoming more important since the opening of the Centers for Innovation and Development for youths. Dyson recently opened one in Singapore with an initial investment of 300 million English pounds. Their goal is to implement a constant cycle of research and development (Financial Times, 2017).
Dyson, the company that made this investment, is known for creating innovative, revolutionary, and elegant designs like the vacuum cleaners without waste bags, which broke sales records, and the hand dryers that work without heat or evaporation.
The success of these products in the market is due to a strategic move to avert Intellectual Property theft through preventative actions. This is achieved by implementing a strict protection policy for the industrial designs and technological developments. Without a doubt, this offers a competitive advantage for ROI (return on investment) and brand positioning.
Building a robust patent portfolio that can be utilized solely during a 20 year period will positively impact the profitability of a company. This isn’t as easy as it sounds, since the business owner has to invest in significant annual administrative fees. But this protects their intangible assets, making it one of the key elements of the leading technology companies in the market.
Many successful companies are executing strategies like opening these research and development centers to support people who have innovative ideas or who produce technical solutions. Eventually, many will bear fruit when the company earns long term profits, opens new markets, and grows their organization through continuous learning.
These companies aim to compete fairly and reduce the risk of third parties exploiting their discoveries. For this reason, they hire law firms with experience in Intellectual Property. In addition, they can capitalize on possible discoveries in their R & D centers, especially in the technological realm.
The investment in innovation, development, and creation of worthwhile products with a viable market niche represents long term profitability. Brand recognition and eventual success for these companies comes from the exclusive rights they inherently obtain, as in the Dyson example.