Early-Stage Intellectual Property Strategy:

Managers of innovative firms are often required to carefully employ intellectual property (IP) strategies, in order to protect their innovations. Formal IP protection through patents and trademarks is associated with high direct and indirect costs, which is why many small and medium sized enterprises (SMEs) do not rely on the formal IP protection which patents and trademarks offer. Instead, they are used in a number of ways to improve the SME's reputation, to generate cashflows and to attract investors. This research offers an indebth literature review on the topic of SMEs' patenting and trademarking motivations. Furthermore, an analysis of the relationship between patents and trademarks filed by an SME and the amount of funds raised provides valuable information for SME managers.