Join feele´ Knowledge Club, a Community Portal for Finance & Legal Professionals with over 1.5 lacs Registered Users!
You may Register separatey at Register »
Commercialization of Intellectual Property (IP) for Small and Medium Enterprisers (SMEs) in IndiaNeeraj Parnami Rajiv Gandhi School Of Intellectual Property Law Indian Institute of Technology - Kharagpur, Kharagpur - 721302 Abstract Lots of people in this modern era take the Intellectual property (IP) as a magical word and they think that the game can be understood only by the experts or the trained people. Even there is no surprise that you may be asking yourself that why and how IP is going to provide an emerging platform in Small and Medium Enterprises (SMEs) sector? Presently, the Small and Medium Enterprises (SMEs) in India are at a crossroad and there is an intense debate over the questions like what would be the future of these SMEs? How these SMEs can survive in the international trade arena? What role can the government play in making these SMEs more competitive? How can the Intellectual property (IP) generate wealth in the business? In order to know the answers of all these questions the paper is written and is concerned with the identification and analysis of current approaches of SMEs towards the Intellectual property (IP), the hurdles that they face; and the accessible & feasible solutions Keywords: Intellectual Property, IP, Small and Medium Enterprisers, SMEs, Commercialization. Paper Outline
|Table I : Performance of Micro and Small Enterprises|
|Year||No. of Units (in Lakh)||Production (Rs. Crore)||Employment (in lakh)||Exports(Rs.Crore)|
|Regd.||Unregd.||Total||At current prices||At constant prices|
|2002-03||15.91||93.58||109.49 (4.1)||118.59 (4.1)||2,10,636 (7.7)||260.21(4.4)||86,013(20.7)|
|2003-04||16.97||96.98||113.95 (4.1)||118.59 (4.1)||2,10,636 (7.7)||271.42(4.3)||97,644(13.5)|
|2004-05||17.53||96.98||118.59 (4.1)||4,18,263 (16.9)||2,51,511(10.0)||282,57 (4.1)||1,24,417(27.4)|
|2005-06||17.53||104.71||118.59 (4.1)||4,76,201 (13.9)||2,77,668(10.4)||294.91(4.4)||N.A.|
Source: Development Commissioner (SSI)4. Hurdles before Small and Medium Enterprises (SMEs) SMEs constitutes more than 90% of total number of industrial enterprises, but with the opening of trade borders and the loosening trade barriers, they are facing tough competition from their global counterparts due to liberalization, change in manufacturing strategies, technological changes in the business arena and that’s why they are not able to learn and earn from the Intellectual Property. Some of the main hurdles are discussed here. 1) Lack of awarenessIn India, many SMEs provide the raw material to large scale manufacturers and they do not realize the importance of Intellectual Property in the business, to protect their ideas and innovation of product; as they are mainly focused towards the production and operation of the raw material. 2) Limited financial capitalFinancial is the most common problem when dealing with SMEs. They mainly focus towards their business with the available limited financial capital rather than the Intellectual Property issues as Intellectual Property is not considered the primary source to generate the revenue for their business. Simultaneously in order to compete their competitors; in case of launching a new product comprising advance technology, they prefer to spend the money in the business rather than in the Intellectual Property. 3) Lack of technical knowledge It is said that technical skill is the road that leads to product innovation and Intellectual Property. In India, many SMEs operate their business without having sound technical knowledge to manufacture the product and that’s why they can not even think about the Intellectual Property in their business. 4) Lack of Business Intelligence (BI)Business Intelligence (BI) is the process of enhancing the data into meaningful information & the meaningful information into knowledge. It may be one of the big hurdles for SMEs to think about their business deeply. Business Intelligence (BI) enables the business to make well - informed business decisions, equipping them to understand the potential benefits and impacts involved. In the competitive and dynamic market scenario, SMEs need to implement every possible means to get an edge and effective decision-making process that has to be a well-informed process, and not a guessing game. 5. Accessible & feasible solutions In order to avoid the demarcation among the SMEs of India & rest parts of the world, a continuous advancement and improvement within the SMEs is required. One of the best ways is - to provide them a sound knowledge of IP to make them able to take part in the economic race of the world through their ideas of innovation. In this context, the Indian government has initiated important steps towards SME sector to cultivate and enhance their capabilities and capacity in becoming resilient and competitive in global market by providing incentives in the form of grants and soft loans as well as development programmes. The existing hurdles for SMEs can be resolved by:1. Organizing workshops on various aspects of Intellectual Property. 2. Enhancing the SMEs accessibility to equity and other funds from the markets. 3. Enforcing the strongly implementation of IP strategy in the country.4. Providing adequate information, orientation and facilities for protecting their Intellectual Property. 5. Improving awareness on Intellectual Property amongst SMEs to develop a positive approach towards creation, protection and management of Intellectual Property (IP) as a source of creating a competitive edge in the trade and technology market for value addition.6. Providing financial assistance such as grants, banking loans, doorstep banking from ICICI, HSBC banks etc. These banks can create a “credit – scoring model” with high predictive power.7. Providing Intellectual Property training. Conclusion: There is still requirement of drawing the pictures of efforts before filling the colors of Intellectual Property on the canvas. With the expansion of market and the growth of competition, SMEs will have to aim at Intellectual Property, Business Intelligence & technical knowledge. Before ripping the fruits of Intellectual Property in the country, Intellectual Property organization is required to organize and promote such IP activities in the villages, towns as well as in the cities. The SMEs may become the potential sector in the country, if they are supported in the right direction by the Intellectual Property organizations. References: 1. http://www.wipo.int/sme/en/ip_business/ip_asset/sme_market_value.htm, Last visited on 4th Jan. 2008. 2. Building Awareness on Intellectual Property Rights (IPR) for MSME in India Asian Regional Meet on IPR 13th – 14th Dec. 2007, Jeju Island, Republic of Korea, Available on http://www.wipo.int/edocs/mdocs/sme/en/wipo_smes_cju_07/wipo_ smes_ cju_07_topic10_2.ppt#272,1, Last visited on 8th Jan. 2008.3. K. D. Raju, RGSOIPL, IIT Kharagpur, “Small and Medium Enterprises in India”, Available on http://papers.ssrn.com/ sol3/papers.cfm?abstract_id =1080505, Last visited on 10th Jan. 2008.4. The Economic Times – News Paper, “The Intelligent Path Ahead”, 15th Jan. 2008.5. The Economic Times – News Paper, “Do banks know their SME clients?” 16th Jan. 2008.6. Protection of Intellectual Property and leveraging its strengths; IPR conference, 27th Oct. 2007, Chandigarh, Punjab.7. Mr. Lakshmi Kumaran, Business Owner of LAKSHMI KUMARAN & SRIDHARAN, E-Summit IPR conference, 25th – 26th Aug. 2007, IIT Kharagpur, Kharagpur.
All form fields are required.