Intellectual Property Securitization

Financing SMEs and Innovation

“…With the increasing of complexity by financial engineering, the connection between originators and infringement their IP assets have been further weakened and thereby, enlarge the risk. Besides, patent, intangible assets are different from tangible assets; their value could change substantially over short period, making the valuation difficult [4]. Also, the patent law is another factor hindering the development of IP securitization, not matter the legislation or the enforcement.…”

“…Also, the patent law is another factor hindering the development of IP securitization, not matter the legislation or the enforcement. The frequent infringement may be one of classic example of law enforcement [4]. In fact, maybe the considerable transaction cost is the real issue regarding to development of IP securitization.…”

“…Presently, innovation has become more important based on its contribution to GDP. Industries based on intellectual properties could contribute 5.8 trillion dollars to the GDP of the United States [4]. Therefore, SMEs should be paid more attention especially when they are struggling to get money from capital markets [5], because the shortage of capital impedes the development and innovation of SMEs overwhelmingly [6].…”

“…The financing problems of SMEs are quite urgent. In EU, only about 10% SMEs could successfully raise funds and commercialized their innovative ideas [4].…”