The current context of business and social transformation we are experiencing is driving many companies to manage and value their intangible assets, a tool for generating value for stakeholders and a key element in promoting differentiation strategies. Why should a company know more about its intangibles?
Monica Castilla, Head of Outreach, Communication and Business Relations at the Spanish Patent and Trademark Office (OEPM); Roberto Guiñales, Head of Financial Valuations at Gesvalt; Noelia Escobar, Head of Institutional and Intangible Assets at Incotec; Gerardo Malvido, Research & Innovation Assessment – ISO 56002 Innovation Management TC expert at AENOR, moderated by Luis Martín Guirado, Corporate Director of Business Development at Gesvalt, reflected on these and other issues in the webinar. “The value of intangible assets as key to business recovery and transformation”. .
In it, Roberto Guiñales has argued that Proper management of intangible assets will enable companies to differentiate themselves, gain a competitive advantage, generate an alternative source of income if they know how to monetise them correctly, and can also become a tool for the internationalisation of companies, given their ease of scaling and exporting. He has also identified four characteristics that define intangible assets from an economic point of view: they must be identifiable, ownership of the asset must be recognisable, they must generate a benefit (present or future), and that benefit must be reasonably quantifiable.
Examples of this type of asset include intellectual property, trademarks, patents, software, and trade secrets.
For her part, Mónica Castilla maintains that lThe protection strategy must be aligned with the business model and, once the asset has been identified,, it is necessary to protect what is essential for the survival and profitability of the company. “Among the many avenues of protection are intellectual property, industrial property, and trade secrets. Everything must lead to value creation in the market.” He added that “protection gives you confidence in the market and attracts investors, factors that increase the positioning and reputation of companies.”.
The Spanish Patent and Trademark Office (OEPM) provided interesting data from the latest studies by the European Patent Office and the EU Intellectual Property Office. These reports indicate that companies that are intensive in protecting their intangible assets through industrial property pay higher salaries and also have 68% more revenue per employee, generating more wealth than those that are not committed to protecting their intangible assets. In addition, their reputation increases by almost 52%, their turnover grows by almost 40% and their ability to access new markets increases by up to 40%.
Why should SMEs be concerned about intangible assets?
“We are in the era of the intangible, of knowledge. It is important in the current recovery process; the concept of value is there.”, argued Noelia Escobar. The executive pointed out that for most companies, accounting is obsolete if they do not include their intangible assets in their balance sheets: “There is a very significant gap between what is in the accounts and the value actually recognised by the market in a transaction.”.
Gerardo Malvido expanded on this reflection with regard to effective asset management: “It should be considered a long-term investment that can generate financial benefits and business opportunities, a vision that must coexist with short-term strategies derived from changes in the competitive and social context and, as we are seeing recently, the health context.” In addition, the executive indicated that the first step for a company that decides to invest in intangible assets derived from R&D&I is to make an inventory of intangible assets (in most cases limited to those registered as patents, utility models, designs, trademarks, etc.), leaving the rest of the value-generating “levers” unidentified, such as the knowledge generated in R&D&I projects, collaboration networks, alliances with suppliers, and others.
Luis Martín Guirado explained that the current situation highlights the fact that companies that know how to manage their intangible assets will be able to generate value in the medium and long term for their customers, employees, shareholders and society in general. Specifically, he pointed out that Intangible assets account for up to 85% of the value of companies.