Question

What are the pros and cons for Intellectual property and why is it is important for innovation.

Answer 1

Pros of Intellectual Property

The various pros or advantages of intellectual property are given as below:-

1. Intellectual property does not have any associated fees
2. With the help of IP, the companies can have a competitive advantage over other similar types of businesses
3. The organizational value can be increased many folds by the Intellectual property,
4. With the help of IP, an organization can promote and market its products and services quite effectively
5. IP can be used to finance various projects
6. IP facilitates more export opportunities due to innovations.

Cons of Intellectual Property

The various cons or disadvantages of intellectual property are given as below:-

In order to protect the intellectual property, an organization has to spend a lot of money and thus making the maintenance and security of IP a costlier affair.

Intellectual properties are quite prone to pirating or unauthorized use by the other organizations and thus the various advantages can be lost

It can result in reduced quality of the products and services as the organizations will not find enough incentives to work on quality and put more resources

Importance:- innovation can be defined as the development of new ideas, concepts, products or offerings. There are various players which are involved in making an innovation into a successful one and thus the role of P tools is quite important in controlling the various risks and it will facilitate the higher returns on their participation in the innovation process. IP plays a very important role in marketing innovation and making it successful among customers. The competitiveness of technology-based organization is boosted significantly by IP. Most of the technology-based organization see innovation as finding better ways of doing things or to develop a successful product.