Informal ways to protect intellectual property (IP) in KIBS businesses

Abstract

Knowledge intensive business services (KIBS) play a key role in the innovation system as carriers, sources and facilitators of innovation. Thus, there is a real need for improved intellectual property (IP) protection in the case of the KIBS enterprises. Former studies have mainly focused on formal IPR but in more recent discussions the importance of informal IP protection has been underlined. This study investigates IP protection and management practices in small service firms. The results demonstrate that besides formal protection methods, IP is also protected by many informal ways that involve extremely heterogeneous range of practices and strategies. At best these informal ways are simple, easy to control and economical to use, and often they are an integral part of a firm’s daily routines.