The Role of Intellectual Property Management in Improving Asset Value of Publicly Traded Companies: A Case Study of Namibia and South Africa

Abstract

The focus on knowledge has changed the valuation of company assets and therefore has had a ripple effect on the economy as a whole. Companies have an increased intangible asset to tangible asset ratio and in some cases form the majority of the assets. Due to this, companies are now recognizing the importance of better systems to utilize Intellectual Property and other Intangible Assets. It is unclear to what extent this trend has affected Namibia. South Africa, a much larger economy has been operating in this sphere for a while. This research is seeks to determine the extents that Namibian publicly companies create and manage their IP. It is assumed that it is on a small scale and there is room for improvement therefore South Africa is used as a benchmark for the country to learn from. The research revolves around the concepts of IP, IP management and valuation. The research was conducted using the qualitative and quantitative methodology, and content analysis. The conclusion is that there is a basal understanding of IP in Namibian publicly traded companies. Majority of the reference to IP is referred to under the umbrella of IA. As expected, South African publicly traded companies have a more systematic understanding of IP and have measures to quantify it to their advantage. The conclusion is that Namibian companies have potential to utilize IP to their benefit if they employ more structures within their companies to exploit it.