Charting a course for growth where ideas and strategy connect
In 2024, most executive teams meticulously scrutinize quarterly earnings, macroeconomic headwinds, and digital transformation programs. However, beneath the surface of every balance sheet lies an asset class often underleveraged—intellectual property. Recent research reveals that while intangible assets have become the bedrock of corporate value creation, many companies still fail to integrate IP strategy as a core part of business decision-making.
This oversight is not just a missed opportunity—it is a fundamental risk. In an economy where innovation cycles are measured in months, not years, the distinction between business strategy and IP strategy has become artificial. The companies that outperform are the ones that recognize that these are now the same discipline.
The Intangible Asset Surge: More Than Just a Trend
The dramatic rise of intangibles is one of the most significant business shifts of the past decade—and it has only accelerated. In 2023, global corporate intangible assets reached an astonishing USD 61.9 trillion, up 8% from the previous year and a tenfold increase since the late 1990s (Brand Finance/WIPO, 2024). For S&P 500 companies, intangibles now comprise close to 90% of total market value—a figure consistently validated by Brand Finance, KPMG, and WIPO (KPMG, 2023). These assets include patents, trade secrets, software, data, know-how, and brand value.
This fundamental shift means that value is no longer stored in machinery or inventory but in innovation, expertise, and reputation. The challenge for executives is not whether IP is critical but how to systematically build, protect, and extract value from it in every strategic decision.
IP Integration: What Leading Companies Are Doing Differently
Rather than treat IP as a compliance function, forward-thinking companies are putting IP strategy at the heart of business operations. Adeia Inc. offers a compelling illustration. In 2023, Adeia generated $388.8 million in licensing revenue, closing 32 deals across OTT and semiconductor platforms and strategically reducing debt by $148 million (GlobeNewswire, 2024). For Adeia, patents and licensing are not just legal tools—they are foundational to business growth, shaping everything from R&D investment to market expansion and risk management.
Samsung provides another intense case study. Its proactive approach to cross-licensing—such as its multi-year agreement with AMD to integrate Radeon graphics in Exynos chips—has enabled Samsung to accelerate its technology roadmap and avoid costly patent battles (Samsung, 2023). This integration of business and IP priorities enables faster market entry, more substantial negotiation leverage, and a more resilient revenue base.
The lesson is clear: when IP is considered from the outset, it becomes a strategic lever—opening new markets, generating predictable income, and reinforcing competitive advantage.
The Real Risks of Siloed Thinking
Many companies still treat IP as an afterthought, addressing it only at the final stages of product launches or market entry. This mindset leads to missed opportunities and unnecessary risks. Today, investors and financial analysts actively look for untapped IP value during mergers, acquisitions, partnerships, and strategic decisions. When organizations fail to incorporate IP into these core business activities, they risk losing significant value or facing unexpected legal and operational setbacks.
The takeaway for senior leadership is straightforward: IP portfolio management must be integrated into every critical business process rather than being handled as a standalone function. Doing so ensures IP becomes a driver of growth, competitive advantage, and deal success. This integration has the power to transform your business, unlocking new avenues for growth and reinforcing your competitive advantage.
From Theory to Practice: The Executive Playbook
So, how do leading organizations turn this recognition into action? Across industries, best-in-class companies are moving decisively to integrate IP and business strategy with these five steps:
Place IP at the Strategy Table:
Ensure IP leadership is present in all high-impact decisions, from product roadmap to M&A and supply chain planning.
Quantify and Report IP Value:
Use analytics to capture the actual contribution of IP to the business—embedding intangible asset valuation into board dashboards, earnings calls, and investor materials.
Align Incentives:
Link executive compensation and team bonuses to IP performance indicators, such as portfolio quality, licensing revenues, and freedom-to-operate outcomes.
Leverage Real-Time Intelligence:
Invest in digital tools that map competitor filings, patent landscapes, and market shifts—empowering business units to act on IP insights quickly and with confidence.
Proactively Commercialize IP:
Go beyond defense: seek out-licensing, cross-licensing, and collaborative ventures that generate new growth and mitigate risk, as demonstrated by Adeia and Samsung. This proactive approach to commercializing IP not only opens up new revenue streams but also helps in mitigating potential risks, making your business more resilient and agile.
Making these moves transforms IP from a legal line item into a living part of the enterprise growth engine.
Conclusion: Leading with a Unified Strategy
The data and market realities are unambiguous: Intangible assets now drive up corporate value. Treating IP strategy as a separate function is no longer sustainable or competitive. The winning organizations are those whose business and IP strategies are not only aligned but fundamentally unified, creating a single blueprint for value creation, risk mitigation, and sustainable growth.
As an executive, ask not “Do we have an IP strategy?” but rather,
“How seamlessly is our IP strategy integrated with every business decision we make?”
