Knowledge protecting methods in different types of companies

Abstract

The importance of knowledge protection (e.g. IP protection) has long been recognized for maintaining continuous revenue and promoting innovation in companies. However, it is also suggested that IP protection is not the only method for knowledge protection and its application to service industries is not yet mature. In this paper, we classify businesses according to their offering types (services or products) and customer serving styles (routine based or knowledge-based), and investigate their differences in protecting methods. Interviews are conducted in Singapore and China towards top managers. Several results have been reached. Firstly, routine based companies focus more on the efficiency of production and supply chain. Meanwhile, knowledge-based companies focus more on the morality of employees. It is also noticeable that with a long term reputation or a strong mother company, the effect of morality decreases. Secondly, IP application is more often used in product-centered companies. However, in China, the main purpose of application is often not for protection but for governmental support. Governments' special allowance is considered more effective in protecting some of the companies or products, regarding their unique functions. © 2010 IEEE.