How small companies capture value from their intellectual property: a qualitative study

Abstract

Innovative small companies often struggle to profit from their intellectual property (IP) due to various constraints, a challenge that remains under-researched. In our analysis of seven Canadian firms, we illuminate the ways these businesses maximize IP value. In doing so, we proposed a nuanced, resource-based view (RBV) framework. This framework reveals that small business managers first evaluate resource deficiencies for specific IPs. Following this, they pinpoint and implement compensating strategies linked to organizational resources, distinct IP forms, and networks. Consequently, small firms can harness the full potential of IP by adeptly evaluating resource gaps and applying appropriate compensatory measures. Moreover, this study underscores that the value that small firms derive from IP depends on their capability to resolve deficiencies with effective strategies. These insights not only advance our understanding of IP value capture processes in small firms but also offer actionable guidance for businesses and policymakers aiming to bolster innovative ecosystems.