Need of innovation and recognition of intellectual property rights- An Indian SMEs perspective

With the due importance of small scale industry in the total industrial growth of India, it becomes important and imperative to focus on the inclusive growth on the value creation activities amongst Small and Medium Enterprises (hereinafter referred to as SME) players. As in the most cases, the entrepreneurs of SMEs are backed by poor knowledge and experience. They in most of the cases skip the very value creation activities or processes either because of poor knowledge and experience or due to constraints of funds availability. There are activities which if undertaken are very cost effective but really value adding. Intellectual Property Rights (hereinafter referred to as IPRs or IP assets) are one of the most inclusive example of those activities. SME like other sectors of economy are producing goods or providing services under various nomenclatures but in most of the times their nomenclature does not find due recognition and identity. This is because SMEs are not awared of the benefits of IPRs, a method of unique identification and recognition across the markets. The IPR includes trademarks, patents, copyrights, industrial designs etc. having so cold negligence on part of SME entrepreneurs. There are many reasons or causes of this poor awareness regarding IPR amongst SME entrepreneurs. This paper puts the light on the key importance of SME sector, lack of awareness of IPR amongst SMEs, causes for non adoption of IPRs and other related issues. Further, this paper suggests for the proper adoption of IPRs and the ways by which IPRs can be utilized as a tool of value creation and tool of wealth maximization.