Technology Management Strategies for Global Competitiveness: A Post Trips Study of Small and Medium Manufacturing Enterprises of Punjab

Abstract

Indian firms have taken decades to catch up with global productivity levels. The time has now come to focus on technology management strategies with a focus on Intellectual Property Rights. Advances in technology have created new opportunities for businesses and new global rules giving value to technology matter a lot in the present times. New rules endorsed by all countries have brought tighter Intellectual Property Protection worldwide. They raise the market value of technology, increasing incentives to invest in R& D. IPRs are mostly filed by large and dominant firms, but it is right time now for SMEs to focus on the IPR strategies and initiate steps to enhance IPR culture in Small and Medium Enterprises of Punjab Manufacturing. The present study has been undertaken to understand the technology management strategies adopted by manufacturing SMEs of Punjab in post-TRIPS period. The study also covers the innovation and Intellectual Property Rights status of manufacturing SMEs of Punjab in India in the Post-TRIPS period. The results highlight the low filing of IPRs as well as low focus on R & D. Technological innovation is an important challenge faced by Small and Medium enterprises (SMEs). This study investigates the factors which influence the growth, performance, and development of IPR attitude of SMEs in India. The study makes an attempt to highlight the extent of Intellectual Property Rights of Indian manufacturing as a whole and a survey analysis has been undertaken for 100 SMEs of Manufacturing sector of Punjab in India to understand the level of IPR filings by firms in Post TRIPS period. Punjab is a progressive state of India. It has been ranked as one of the growing states of India. The present study also uses growth rates for analyzing the status of IPRs on all India level. It also presents the sector-wise status of patents filed. Manufacturing SMEs have been categorized on the basis of nature of industry into Durable; Non Durable; and Essential goods. The results of the study highlight the low level of IPRs in India. Durable industries have filed most of the trademarks. Most of the copyrights and patents have been filed by Essential goods. The results of the factors influencing Innovation in SMEs of Punjab Manufacturing depict that: Increased market share; Improved production flexibility; staff employed in R&D; status of IPRs; and Improved Environmental impact or Health Safety aspect explain 87.6 percent of the variation. The final section of the study recommends factors for promoting IPR Culture for SMEs of Punjab manufacturing. Factor analysis results highlight that two factors viz. i) Policy Initiatives and organizational factors explain 62.85 percent of total variation.

The results of the present study highlight that IPR awareness and developments in Manufacturing SMEs is still at an initial stage and firms are mostly into filing trademarks and copyrights. Patent filing is almost missing. The present study uses a Canonical Correlation and Multiple Regression analysis to determine the factors influencing innovation in manufacturing SMEs. The results of Canonical Correlation have highlighted four factors viz. market share; quality; production flexibility; and status of IPRs are made major contributors to the dependent set measured in terms of Research and Development (R & D) expenditure; and range of new goods and services introduced. The results of multiple regression analysis have highlighted market share; and production flexibility as the important predictors of the model. The weaker IPR status of manufacturing SMEs highlights that there is a need to change the attitude of SMEs regarding Innovation and IPRs. Thus the study also points out the steps that can be initiated for improving the Innovation and IPR Environment for manufacturing SMEs.