From “Protecting” IP to “Leveraging” It: The Strengthening of the Intellectual Property Management Support Network as a Turning Point in SME Policy

The Japan Patent Office and the Small and Medium Enterprise Agency, among others, have formulated an action plan to strengthen the functions of the “Intellectual Property Management Support Network,” which promotes the effective use of intellectual property (IP) by small and medium-sized enterprises (SMEs) and startups. A signing ceremony was held in Nagoya on the 25th. This initiative clearly signals a policy shift: positioning IP not merely as a legal defensive tool, but at the core of corporate management strategy.

This article examines the key points of the new action plan and its policy and practical implications.

What Is the “Intellectual Property Management Support Network”?

The Intellectual Property Management Support Network is a public-private collaborative support framework established in fiscal year 2023 (Reiwa 5). It currently consists of the following five organizations:

  • Japan Patent Office
  • Small and Medium Enterprise Agency
  • National Center for Industrial Property Information and Training (INPIT)
  • Japan Patent Attorneys Association
  • Japan Chamber of Commerce and Industry

The framework is designed to integrate IP-related institutional administration, practical support, human resource development, and regional networks across organizational boundaries.

The signing ceremony was attended by Commissioner Yasuyuki Kasai and Commissioner Ryuichi Yamashita, demonstrating strong commitment at the policy level.

Three Pillars of the Action Plan

The action plan presents three primary strategic directions:

Priority Support for Growth-Oriented Companies

The plan clarifies a policy of allocating limited support resources preferentially to SMEs and startups with strong growth ambitions.

This represents a shift from a “broad but shallow” approach to one of “selection and concentration.” The targeted companies include:

  • R&D-driven firms possessing proprietary technological seeds
  • Startups planning overseas expansion
  • Companies seeking financing based on their IP assets

For growth-oriented firms, IP serves as a source of competitive advantage and a critical factor in enterprise valuation. Concentrated support is therefore a rational design aimed at maximizing policy impact.

Strengthening Cross-Ministerial Information Coordination

Historically, SME support measures have been characterized by administrative compartmentalization, with programs operating in silos.

The action plan emphasizes:

  • Information sharing among ministries
  • Cross-utilization of support programs
  • Integration with assistance for market development and new business expansion

This marks an evolution beyond merely supporting IP application procedures. It expands assistance toward integrated support encompassing commercialization, market expansion, and brand strategy.

IP does not create value simply by being acquired.
Value arises through effective utilization.

It can be said that the institutional framework is finally beginning to fully incorporate this premise.

Development of “IP Management Support Professionals”

Of particular importance is the promotion of human resource development for “IP management support professionals.”

These professionals are defined as individuals who:

  • Possess deep knowledge of IP systems
  • Can link corporate strategy with IP strategy
  • Are capable of providing hands-on, on-site support to SMEs

A major structural challenge among Japanese SMEs is that while support systems exist, companies often lack the capability to utilize them effectively. Heavy reliance on external specialists makes it difficult to accumulate in-house expertise in IP-based management.

The new policy direction aims to create a foundation enabling companies to autonomously engage in IP-driven management, even without continuous reliance on public support.

This perspective is highly significant.
It suggests a shift from subsidy-dependent models to self-sustaining growth models.

Why IP Management Now?

Several structural factors underpin this policy shift:

  • The global trend toward prioritizing intangible assets
  • Acceleration of startup promotion policies
  • Transition from price-based competition to value-added competition

The source of corporate value has increasingly shifted from tangible assets—such as equipment and land—to intangible assets, including technology, brands, data, and know-how.

IP sits at the center of this transformation.

Particularly for startups, patent portfolios and IP strategy directly influence fundraising capacity and M&A valuation.

The strengthening of this network can therefore be viewed as a policy adaptation to evolving economic structures.

Future Challenges

At the same time, several issues will determine the initiative’s effectiveness:

  • Are the criteria for selecting support recipients transparent?
  • Will the benefits sufficiently reach regional enterprises?
  • Can both the quantity and quality of support professionals be secured?

Even well-designed systems produce limited outcomes without effective implementation.

Among regional SMEs in particular, psychological barriers to engaging with IP remain relatively high. Beyond providing information, presenting concrete success cases directly linked to managerial challenges will be essential.

Conclusion: Placing IP at the Center of Management

This action plan represents an effort to elevate Japan’s IP policy to a new phase:

  • From application-centered support to management-integrated support
  • From isolated assistance to network-based collaboration
  • From subsidy dependence to autonomous growth support

If these shifts are fully realized, they could mark a major turning point in Japan’s SME policy.

The key question going forward is whether strengthening the institutional framework will lead to tangible behavioral change among companies.

How many firms will move beyond viewing IP as something merely to be “protected” and instead master it as an offensive strategic resource?

The answer to that question will significantly shape the future competitiveness of Japan’s SMEs.