Assetization of IP reduces incentives to develop actual products

Evidence

The previous IPO exit strategy is increasingly limited by the lack of product revenues; instead, most life science businesses have to find ways to monetize their intangible assets by developing income streams from royalties, partnering, out-licensing, and so on (Yang 2014). Paradoxically, this means that there is less incentive to develop products and services (e.g., drugs) since the assets themselves (e.g., IP) can produce income (e.g., monopoly rents) and retain their value as capitalized property (Zeller 2008). — Kean Birch, Rethinking Value in the Bio-economy, 67

Categorization

• DEFINE: Introduces the key analytic pairing of ‘assetization of knowledge’ and ‘monetization of that knowledge asset’ central to the assetization debate.
• XREF: Directly relevant to the reader’s foundational assetization work; the paradox (IP income crowds out product development) resonates with finance-of-innovation critiques like Mazzucato’s entrepreneurial state. — connects to: Industries hedge creative risk by leveraging pre-owned intellectual property — Andrew deWaard, Derivative Media: How Wall Street…, 167; Assetization constitutes a distinct logic of investment irreducible to speculation or rentiership — Paul Langley, Assets and Assetization in…, 27; Organizational incentives silence dissent inside firms riding unsustainable leverage — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 900

Related

• Assetization constitutes a distinct logic of investment irreducible to speculation or rentiership (similarity 0.78)

Broader Connections

• Assetization constitutes a distinct logic of investment irreducible to speculation or rentiership #expands (0.82) — Paul Langley, Assets and Assetization in…, 27
• Industries hedge creative risk by leveraging pre-owned intellectual property #complicates (0.78) — Andrew deWaard, Derivative Media, 167
• Organizational incentives silence dissent inside firms riding unsustainable leverage #exemplifies (0.75) — Yanis Varoufakis, Technofeudalism, 900