How Patents Promote Industrial Innovation and Advancement

How Patents Promote Industrial Innovation and Advancement

All over the world, the number of patents granted has increased significantly in recent years. For those who are in the know, it’s almost as though practically everything has somehow been patented. This fact is actually highly positive because it shows that the world is becoming more innovative and advanced all the time. All patent renewals, application, and registrations in Malaysia are overseen by the Intellectual Property Corporation of Malaysia (MyIPO).

The rights and privileges which a patent bestows on its owner serve to encourage innovation and technological development. There are several different reasons why this is the case:

Exclusivity

A person with a patent benefits from exclusivity. Since a specific patent may only be owned by one person, any further innovative activities related to the item protected by the patent can only be conducted by the patent’s owner. This in turn encourages the one who has the patent to continue developing, improving, and upgrading the item in question.

Patents can be said to be policy instruments which encourage their owners to continue investing in research and development. The work and output which will stem from this research and development can increase the scope of the item’s practical use. It can also lead to new frontiers in industrial innovation and advancement being reached.

Enhance commercialization status

Patents can increase the total revenue of a business. By providing its owner with exclusivity over a certain product, service, or process, a patent helps develop the strength of its owner’s market position. This enables the business to earn more revenue through enhanced commercialization. Patents also facilitate the earning of additional revenue through licensing.

The increased level of revenue which can ensue from a patent serves to encourage patent owners to continue innovating and reaching new levels of advancement. If they do not do so, they run the risk of being left behind by advancements made by other key industry figures and losing out on much revenue. However, by consistently refining and making positive changes to patented items, business owners with patents will thrive even as the market changes and make a tidy profit.

Sharing of Information

Patents do much to promote the sharing of knowledge. Studies show that the vast majority of businesses depend on information disclosed in patents to keep pace with technological developments and inform their own research and development projects. This proves that patents are effective tools for the sharing and transfer of industrial, technical, business, and technological knowledge which promote innovation and creativity.

Sharing of information through patents promotes innovation because patents protect all of their owners’ intellectual property rights. Patent owners are therefore more inclined to promote their patented items as much as they can. Through such promotion, they will interact with other patent owners and share ideas with them. Such exchanges are fertile breeding grounds for the development of true innovation in any industry.

A stable patent system which enables cross-licensing, interaction between patent owners, and increased revenue through patents will drive innovation in any industry. The protection provided by a patent allows its owner to develop products without running the risk of many repercussions of which they would otherwise fall afoul. Thus, patents clearly promote industrial innovation and advancement.

Please contact us for more information about how to patent a product in Malaysia. We will be glad to serve your needs.