Using IP Analysis to Inform R&D, Business and Investment Decisions

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Recently, Patsnap held a free webinar to take an in-depth look at how information within patents and intellectual property literature can help to inform data-driven decisions across a broad range of differnt business functions - from R&D strategy through to marketing or investment decisions. Understanding the role of IP within a company is also becoming an increasingly important concern for shareholders and investors. Numerous reports estimate that around 80% of a company’s valuation now comprises intangible assets, which compares to just under 20% back in 1975.

When all the information from patents is aggregated it reveals significant insights into how a technology area is performing overall or how a specific company is performing in that space. It provides information to build a picture of the competitive landscape and can enable organizations to better assess risks and opportunities.

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From an opportunity perspective it can often be very difficult to assess how well a new and emerging technology might perform. In this webinar we investigated an example that shows the level of commitment that various players have towards riskier technologies. This type of analysis helps to ascertain whether market players are continuing to back a technology even when a market is slack or an optimum application may not have been found. It's an important factor for organizations when deciding whether to continue with a specific technology or prioritise something else. Effectively, it is a way of determining whether there is any value in a certain space.

Value is a hot topic at the moment, particularly because shareholders are looking for a more accurate way of evaluating companies due to the increased focus on intangible assets. When looking at an IP portfolio, the way in which its patents are distributed can provide a good indicator of the level of security for investors - for instance if a portfolio is weighted towards higher value patents. The graph below shows Samsung’s patent portfolio distribution within semiconductors, by value. You can see that more of Samsung’s patents in this space are valued from mid to high value whereas a majority of similar companies hold patents that are, on average, lower value.

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