Intellectual Property represents up to 70% of a modern companies value. And with technology breaking new ground every year it is a safe bet to see this only going higher.
And yet despite that recent research finds that most board directors see IP as a risk or a cost, but not adding value.
This is odd. It is mooted that with no universal method for including IP on the balance sheet, many investors (and one supposes board directors) are in the dark about the true value of IP.
Surely this must be addressed?
The research goes on to find that many business decisions are made with a total lack of understanding of the relevant IP in question.
Maybe the situations are connected?
Surely the time has come for stocks to fully price in the Intellectual Property of a company. Once the value of IP is therefore fully visible, I believe there will be a sea change to this highly prized and valuable asset.
Bosses at some of the world’s most innovative companies, including BAE Systems, Siemens, Philips and Bayer, have warned that intellectual property (IP) is being neglected by the business world, despite representing up to 70pc of a modern company’s value.