From Incremental Know-How to Patent-Driven Startups

This chapter analyzes the pivotal role of know-how and patents in driving startup success, with a strong emphasis on the strategic value of proprietary knowledge and intellectual property (IP) protection. While know-how provides a competitive edge, it is challenging to enforce and value compared to patents, which offer scalable value through legal protection. The chapter examines various valuation methodologies, including relief-from-royalty and incremental income approaches, and highlights the impact of digitalization on IP management. It also addresses the complexities of technology transfer and the influence of emerging technologies on startups. Ultimately, the chapter underscores the critical importance of effectively leveraging and protecting know-how and patents. This is not just a matter of legal protection but a strategic move that ensures sustainable growth and innovation in the startup ecosystem.