The Role of Intellectual Property in Globalizing Business Models of Knowledge-Intensive SMEs

The “born global” phenomenon of hi-tech small and medium size enterprises (HSMEs) has been explored over the past 15 years. Until today, too little attention has been paid to intellectual property (IP) in knowledge-related processes, and the business models of HSMEs in their market globalization processes. This chapter aims partly to fulfill this gap by exploring the role of IP in the “knowledge-market” development trajectories involved in becoming global. To present a theoretical background for this topic, this chapter maps the main processes involved in global breakthroughs, as well as a “knowledge-market” framework for the globalization of HSMEs. An empirical study is based on four case-studies representing ICT and biotech companies of Estonian origin: Regio, Icosagen, Skype, and Asper Biotech). Results demonstrate four very different globalization trajectories named Regio, Icosagen, Skype, and Asper Biotech (see Figure 3). All cases are characterized by different types of knowledge accumulation preceding their globalization, and the selection of various business models. The results of the study provide for a better understanding of the strategic options that can be followed during the internationalization process.