Enhancing innovation and intellectual property culture in manufacturing small and medium enterprises

Abstract

Technological innovation is an important challenge faced by small and medium enterprises (SMEs). This study investigates the factors that influence the growth, performance, and development of intellectual property rights (IPRs) attitude of SMEs in India. The study is an attempt to highlight the extent of Intellectual Property Rights of Indian manufacturing as a whole and a survey analysis has been undertaken for 100 SMEs of manufacturing sector of Punjab in India to understand the level of IPRS by firms in post TRIPS period. Punjab is a progressive state of India with an average growth rate of 10%. Punjab has been ranked as one of the growing states of India. The present study uses growth rates for analyzing the status of IPRs at all India level. It also presents the sector-wise status of patents filed. Manufacturing SMES have been categorized on the basis of use into durable, non durable and essential goods. The results of the study highlight the low level of IPRs in India. Durable industries have filed most of the trademarks. Most of the copyrights and patents have been filed by essential goods. The results of the factors influencing Innovation in SMEs of Punjab manufacturing depict that: increased market share, improved production flexibility, staff employed in R and D, status of trademarks in last ten years and status of copyrights in last ten years and: improved environmental impact or health safety aspect explain 87.6% of the variation. Finally, the study recommends the factors for promoting IPR culture for SMEs of Punjab manufacturing. Factor analysis results highlight that two factors namely; i) Factor analysis results highlight that two factors namely; policy initiatives and organizational factor explain 62.85% of total variation. Key words: Intellectual property rights (IPRs), innovation, small and medium enterprises (SMEs), Punjab manufacturing.