Innovation capability can be defined as the ability of a company to convert ideas into something more tangible that has an economic value. It is imperative for the organizations to recognize innovation capabilities to sustain. These can be useful resources of strengths. Enterprises are found to apply many ways to ensure that innovation is maintained in the companies. When these companies are faced with dynamic changing environments, it is found forever looking for ways to innovate and to stay ahead. Added to this, it is also trying to stay relatively more stable (Bell, 2009). The following analysis below will show how large companies try to develop their innovation capability. This is done through Intellectual property strategy and open innovation model to bolster the protection of innovative products or services. These are found to collaborate with existing research known.
Developing Innovation Capability Through Intellectual Property Strategy
The definition of intellectual property is the asset that enables the company to maintain competitive advantage. Intellectual property rights are considered to be tangible worthy assets for companies. These are found to be essential for the companies. Some of the property of a company includes companies’ logo, trade-marks, intellectual designs, and inventions. In practice and in scholarly researches, many of them have been stressed to establish protective barriers around innovations for sustaining competitive advantages of established companies. These barriers can be protected through legal protection strategies, such as copyright, patents or trade-secrets (Reitzig, 2004).
The Importance of Intellectual Property Protection
For most of companies, especially those who have high innovation volume, IP protects their long-term viability rather than just a concept or ideas. When enterprises research new products, they need to factor in the tangible and intangible needs of the company. They need to inject this into a great deal of labour power, capital and resources. In this paradigm, some of competitors will employ improper and low cost methods. This is done by imitating, duplicating or conducting reverse engineering to obtain IP. These lead to damage enterprise’s R&D returns and new products produced by enterprises losing competitive advantage. Business success is always accompanied by intellectual property lawsuits. To elucidate with example, Samsung was sued by Apple because Apple assumed that Samsung copied their patents in terms of three functional invention patents and four exterior design patents. Huawei infringed data communication products and a lawsuit was brought on by CISCO. Toyota brought a suite against Chinese company Geely because of infringement of trademarks. These cases show the need for the companies to maintain their IP to sustain in a competitive environment. IP protection is imperatives for companies to sustain.