IP as a strategy for SMEs internationalization: Mexico – Japan case. Empowering SMEs' competitiveness with IP assets in the global market

Index

1. Introduction

2. IP situation of Mexican and Japanese SMEs

・Statistic data of Mexican and Japanese SMEs

・Mexico and Japan IP Framework for SMEs

・Mexican SMEs weaknesses for internationalization

3. IP strategy for Mexican SMEs

・IP strategy inside SMEs

・IP strategy for Mexican SMEs based on Trademark

・IP strategy for SMEs based on Patent

・IP strategy for SMEs based on Technology transference

4. Internationalization for SMEs

・Governmental support for SMEs internationalization

5. Conclusions

Objective

Define an IP strategy for the internationalization of Mexicans’ SMEs using as a principal tool IPR and the Japanese experience.

• 52 % of GDP and provide 72 % of employment

• Generate significant domestic and export earnings

• Not IP Strategy for protect their products in the international market

Current situation for Mexican’s SMEs

• Become more competitive • Strong investment in research

and development • Acquiring new technology • Improving management

practices • Qualification of Human

Recourses

• Protect their products in the international market from counterfeit and piracy

• Avoid infringement

IP strategy

• Protecting their investment

• Capitalizing intangible assets

What does SMES required for successful business in international market?

Mexican SMEs definition and their impact in economy Stratification of Mexican SMEs

[CATEGORY NAME]

97.6%

Small entrerprise

s 2%

[CATEGORY NAME]

0.4%

SMEs in Mexico

Micro- enterprises Small entrerprises Medium enterprises

Micro- enterprise

s 75%

Small entrerpris

es 14%

Medium enterprise

s 11%

SMEs employed

Micro- enterprises Small entrerprises Medium enterprises*Maximum top combined= (Workers)X 10% +( Annual Sales) X 90%.

Size Sector

Range of

number of

workers

Annual Sales Amount

Range (million of

pesos)

Maximum top

combined*

Micro All Up to 10 Up to $4 4.6

Commerce From 11 Until 30 From $4.01 Until $100 93

Industry and

ServicesFrom 11 Until 50 From $4.01 Until $100 95

CommerceFrom 31 Until

100

ServicesFrom 51 Until

100

Industry From 51 Until

250From $100.01 Until $250 250

Stratification of Mexican SMEs

Small

Medium

From $100.01 Until $250 235

Global Competitiveness Report 2016-2017

WEF

Source: Own elaboration with data from Global Competitiveness Report 2016-2017, pages 217 and 261.

Patent Applications by Top Fields of Technology (2001 - 2015)

Mexico

Japan Electrical

machinery, apparatus,

energy 24%

Optics 21%

Audio-visual

technology 20%

Computer technology

18%

Semiconductors 17%

Pharmaceuticals 26%

Civil engineering

22% Medical

technology 20%

Food chemistry

16%

Basic materials chemistry

16%

Filing patent applications

distribution in Mexico

In Japan most of the patent applications are presented by enterprises

Mexico, the principal applicants are Universities and National Research Institutes (38%).

Source: IMPI, IMPI presents the ranking of Universities, Institutes, enterprises, and Inventors in a matter of patent filed applications 2010 – 2016 recovered from https://www.gob.mx/impi/articulos/presenta-impi-ranking-de-universidades-institutos-empresas-e-inventores-en-materia-de-solicitudes-de-patente-2010-2. September 22, 2017.

[CATEGORY NAME]

[PERCENTAGE]

[CATEGORY NAME]

[PERCENTAGE]

[CATEGORY NAME]

[PERCENTAGE]

[CATEGORY NAME]

[PERCENTAGE]

Filing patent applications distribution in Mexico

Mexico and Japan IP Framework for SMEs

Cabinet

Office

(IP

policy)

IP education

PCT Madrid Protocol PPH

IP strategy

Education

IP collaboration

IP financial support

Mexican SMEs have to involve cross cooperation Government

Academia Industry: SMEs

Taxes

Investment

New technology implementation

Trademark

Trade secret

Utility Model

Patent registration

Design

Licensing &Transfer

Technologies

Alliances

IP strategy inside SMEs

IP pool

Best practices Management (quality, good

management of database, suitable use of budget, IP knowledge)

Investment in R&D and Human resources (IP training, incentives

and consultancy with experts)

Management of Trade secrets inside Mexican SMEs

Table: Levels of classified information

Classify information

Labeled as a secret information

Limited access

Employers must to sign NDA and managers will receive training about confidential information management

Design an incentive policy for increase compromise and loyalty from the employers to the Company

Section manufacture process to prevent information leakage and disclosure of trade secrets

Management level

Kind of information

Disclosure

Strict confidential Critical trade secrets

Undisclosed

Confidential information

Important trade secrets

Can be disclosed just after the sign of a NDA

Closed in each part of the production

cycle

Trade secrets (Know how)

Close information protected inside the company and open sectioned

IP strategy for Mexican

SMEs based on

Trademark

Inside SMEs

Foreign markets

Selection of Candidate Marks for

Trademark application

Analyze the niche market

Analysis of such trademark

applications

Do benchmarking

Future potential of expanding into

different businesses

Learn about culture and business

culture in the target market

Correct classification of classes of

goods or services

Review legal framework and try to

apply in a multi-class application

system

IP strategy for SMEs based on

Patent

Securing pioneer patents in the

earliest stage of R&D

Building patent portfolio to

protect your own products

Acquiring patents in the peripheral

areas surrounding your products

Excluding competitors

patenting

The patent strategy has to consider four key factors:

Pro & Cons of IP strategy based on Patent

Pro

•Market position improvement on a local market;

•Market position improvement on the global market;

• Improvement of the competence of the enterprise;

•Opening the door for licensing and internationalization

Cons

•The costs of applying for and maintaining a patent . These costs are multiplied when a patent applicant seeks protection in a number of countries or regions.

•The cost of litigation in an infringement case

Time involved

in the process

Expenses Cost

PCT Top Applicants (Publication in 2015) Mexico vs Japan

Mexico

Applicant Publication Rank

NATIONAL AUTONOMOUS UNIVERSITY OF MEXICO 20 1035 CENTER FOR RESEARCH AND ADVANCED STUDIES OF THE NATIONAL POLYTECHNICAL INSTITUTE 8 2415 RAAM LABORATORIES FROM SAHUAYO S.A. DE C.V. 5 3595 METALSA, S. A. DE C. V. 5 3595 AUTONOMOUS UNIVERSITY FROM HIDALGO STATE 5 3595 CENTER OF RESEARCH AND ASSISTANCE IN TECHNOLOGY AND DESIGN OF THE STATE OF JALISCO A.C. 4 4365 P.I.MABE, GROUP, S.A. DE C.V. 4 4365 SLP INSTITUTE OF SCIENTIFIC AND TECHNOLOGICAL RESEARCH, A.C. 3 5606 LIOMONT LABORATORIES, S.A. DE C.V. 3 5606 QUIVER LABORATORIES, S.A. DE C.V. 3 5606

Japan Applicant Publication Rank

MITSUBISHI ELECTRIC CORPORATION 1,593 5

SONY CORPORATION 1,381 8

TOYOTA JIDOSHA KABUSHIKI KAISHA 1,214 15

PANASONIC INTELLECTUAL PROPERTY MANAGEMENT CO., LTD. 1,185 16

HITACHI, LTD. 1,165 17

SHARP KABUSHIKI KAISHA 1,073 19

FUJIFILM CORPORATION 947 21

NEC CORPORATION 895 22

DENSO CORPORATION 704 28

MURATA MANUFACTURING CO., LTD. 658 31

Source: WIPO statistics database. Last updated : 05/2017

IP strategy for SMEs based on Technology transference (Universities and SMEs)

Technology transference

Supporting organization

SMES University

Pool of patents

Licensing

Developing new innovation projects

Building innovation clusters

Getting support & budget from governmental institutions

Governmental support for SMEs internationalization

Definition of Niche

marketing overseas

Step 1

Developing Overseas Clients

/ Business Partners, Etc.

Step 2

Expansion of Overseas Markets

/Establishment of Local Bases

Step 3

• Seminars and conferences

• Overseas

benchmarking

Information Gathering Overseas Mission Dispatch Advice from Overseas Business

Product Development via Overseas Exhibitions Overseas, Business Meetings

Commercialization Feasibility Study, Examine commercialization

On-Site Advice via Public and Private Support Institution

Financial Support

Enforce education and IP culture (High schools, Universities and SMEs)

Developing projects sharing budget investment

Best practices, Enforce trademark, Enforce IP pool, Networking,

Consolidate strategy alliances

Grow up budget for education, R&D, promote Mexican products overseas,

Grow up budget for support SMEs international applications and

law support in IP matters.

Industry: SMEs

Academia

Government

General recommendations for Mexico

Pros and Cons of Japanese model applied to Mexican SMEs

Issue Pros Cons

IP education for SMES IP knowledge Human resources

Not enough budget

SMEs and Academy Technology transfer

R&D based in commercial necessities Profit patent by licensing Develop innovation

Lack of networking

Governmental support for international applications

Increase number of patent and trademark applications

Not enough budget Bureaucracy

Budget for infringement Avoid and to facing counterfeit and piracy in international markets

Not enough budget

IP challenges for Mexico imply the execution of a step by step strategy in which the specialization of human resources is the Key. Mexico can get this experience through the cooperation with other countries leaders in the matter to increase the support for SMEs.

ありがとうございました！

MBA KARINA NUNCIO MORA

Consultancy in Custom clearence and Supply Chain Managment

Phone: +52 (55) 32825304 e-mail:karonuncio@gmail.com

https://mx.linkedin.com/in/karina-nuncio-3502549a