Developing an effective strategy for managing intellectual assets

Although many companies today are exploring ways to extract value from their patent portfolios, most use ad hoc approaches that are inefficient and lead to disappointing results. Leading firms, on the other hand, take a proactive approach and systematically tie their intellectual asset management strategy to the core strategies of the firm. A study of more than 70 firms illuminates two key aspects of this approach: how to strategically organize the firm's intellectual asset portfolio and how to extract value from that portfolio. This article describes how firms strategically organize their intellectual assets to maximize their value to the firm. A subsequent article will describe specific methods firms use to extract value from their intellectual asset portfolio.