Intellectual Property Valuation Decision Support System: Towards Dynamic SMEs in Malaysia

One of the major thrusts of NEM is to propel Malaysia into a high income nation through innovation-led growth by 2020. A vital aspect of this innovation-based economy is Intellectual Property (IP) and the ancillary issues that arise from it, such as the creation, protection, management and commercialization aspects. These factors play an imperative role in the National Intellectual Property Policy (NIPP)'s ultimate aim which is to develop an IP industry as a driver for innovation and creativity that is vital to sustain Malaysian's economic growth. Hence, the key value of IP creation is essential in developing a vibrant IP industry. As a subset of an intellectual capital, IP is recognized to be the core element of an innovation. It is an essential source of a firm's competitive advantage as well as the nation's economic growth. Strategic business decisions are becoming more dependent upon knowing of the value of IP and knowing what to value and how should it be valued. SMEs in Malaysia are the backbone in the Malaysian economy and they are the main engine of endogenous growth in realizing the NEM strategic research agenda towards an innovation-led economy and thrusting Malaysia into a high-income nation in 2020. This is a challenge for SMEs as they are characteristically less sophisticated in their management styles, strategic knowledge and skills. SMEs should therefore be encouraged to give paramount importance to the creation, management and the valuation aspects of IP. By providing a support mechanism, the SMEs would be aiding in achieving the objective of the NIPP which is to enhance IP as a new engine for growth and enhancement of economic and social prosperity. This conceptual paper intends to propose a development of a decision support system (DSS) in valuing IP to assist SMEs in their decision making process. Hence, the DSS for IP valuation is believed to serve as an enabler towards more dynamic and competitive SMEs in spurring the Malaysian economic growth.