How Individual Inventors and SMEs Exploit Intellectual Property Rights: The Case of Finland

Inventions have long been recognized as key driver for wealth creation of nations. As intellectual property (IP) rights are costly and difficult to acquire and enforce, it is often argued that SMEs are disadvantaged in their ability to utilize IP rights. Against the background of the patent upsurge, we first conduct a literature review of the role of patenting and alternative instruments to protect intellectual property. Secondly, the patent frequencies are analyzed based on statistics, and thirdly semi-structured interviews are used to provide an understanding of private inventors and SMEs IP rights utilization. The results of the study show that actions to support patenting in Finland and registering of other types IPR remains low. As propensity to patent using different routes, national first filings are declining for small countries like Finland as companies increasingly use PCT, and other alternative routes. Interviews with private inventors and SMEs show, that the general knowledge of the global patent system, and capabilities to operate with IPRs, are quite modest. This leads to unjustified high expectations of economic benefits of patenting, and eventually, disappointment with IPRs. Reasons for this development, and challenges to the Finnish national patenting support environment are discussed. We derive some possible challenges for future patent policies from these insights.