Edison in the Boardroom Revisited: How Leading Companies Realize Value from Their Intellectual Property, Second Edition

Chapter 4

Level Two: Manage Costs

Level Two is the second level of intellectual property (IP) management evolution for firms involved with IP (see Figure 4.1). Companies at Level Two are in defensive mode, just as they were at Level One. The difference is that Level Two companies have realized that IP, particularly patents, can be both expensive and lucrative, so they want to increase the returns on the dollars they invest. Indeed, companies at this level have come to realize that IP is a business investment, one that requires keen management attention and astute cost-benefit analysis. For this reason, companies at Level Two find themselves interested in activities that reduce cost, increase efficiency, increase effectiveness, and raise productivity.

Figure 4.1 Level Two of the Value Hierarchy