In recent years, intangibles (including intellectual property such as design rights, industrial secrets, trademarks and patents) have played an increasing part in company valuation. In 2020 intangibles were estimated to represent 70% of global company value.
A study by the European Patent Office in 2021 also showed that companies which own at least one patent, registered design or trademark generate on average 20% higher revenue/employee than those without any IP rights.
Given this backdrop, it’s important that management teams in aerospace and defence sectors are aware of the IP within their business and they have a plan to effectively exploit this.
Threats:
✗ Infringing on other people’s IP
✗ Others infringing on our IP
Opportunities:
✓ Identifying redundant technology/IP we can exploit
✓ Potential strategic partnerships/acquisitions
✓ Neutralising competition
✓ Establishing the “innovativeness” in your R&D to strengthen investment pitches