There is a staggering decline in the capitalization of intellectual property (IP) and low levels of investment in R&D, particularly with respect to emerging nations within the global IP environment, which limits accelerated industrial growth. In most emerging markets, this necessitates that management address multiple competencies better, that exploit organizational resources, knowledge, and management ability, to adapt faster than the competition. Our research offers a management model to address this management challenge strategically.
This research also indicates that IP as a value creation mechanism is currently not a top management priority although investors increasingly look toward good IP management as an indicator of future organizational growth. The research presents the IP Scorecard, a further inductive development of Kaplan and Norton's traditional Balanced Scorecard. The IP Scorecard is a strategic management tool that enables management to drive a robust industrial growth strategy that is explicitly positioned within the knowledge economy, identifying target areas for organizational development around knowledge and IP management, in order to achieve the competitive higher-ground, by strategically creating and capitalizing on value arising from innovation and R&D activities.
The IP Scorecard sensitizes management on where and how to carve out competitive turf, particularly from a knowledge and IP value creation perspective, seeking ultimately to enhance corporate/shareholder and product-life-cycle value. The paper encompasses limited field research findings on key IP-related strategic management considerations that promote leadership in innovation and R&D, across the product life cycle.