Branding and innovation - strange bedfellows

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Branding and innovation - strange bedfellows

Brands promote innovation. The proposition sounds wrong, but a recent WIPO report suggests some links which, when you reflect on it, make a lot of sense

WIPO report

I was in Geneva recently for the launch of WIPO's second World Intellectual Property Report, on "Brands - Reputation and Image in the Global Marketplace". As I said at the launch, it's welcome to see some interesting research on the economic role of brands/trade marks (which, as the report says, have different meanings - at least in the English language). The report makes some very useful observations about different types of brands, including national brands, and also seeks to put some numbers on their economic contribution.

But what I found particularly interesting in the report and in the subsequent discussion of it was the third chapter "Branding, Innovation and Competition". This concluded that "branding helps firms to appropriate their investments in innovation" and found that "firms that invest more in innovation also invest more in branding".

When I read this, I was sceptical - as I expect many readers are. Surely you protect innovation with patent rights? Trade secrets might play a role in some industries, and you could make a case for the role of industrial designs or even copyright. But trade marks? We associate brands with more mature industries as FMCG, luxury items and clothing.

But comments by WIPO Chief Economist Carsten Fink (below, left), who presented the report, put a slightly different slant on it. He argued that "branding is one of the most important mechanisms for firms to secure returns on R&D investments", and reasonably pointed out the close link between aggressive branding and high-growth tech industries, such as telecoms and IT - as well as pharmaceuticals which is, as so often, to some extent a special case.

Carsten Fink

Put this way, the branding-innovation connection makes a lot more sense. Indeed, if you are launching an entirely new product - say, a smartphone or a new internet service - then having a memorable and powerful brand can be essential to create and build the market. Rankings of the most valuable brands are useful here, even if (like me) you are sceptical about the methodologies and the dollar values. In the latest versions of the three main rankings (Interbrand, Brand Finance and BrandZ), Apple, Google, IBM, Microsoft and Samsung all feature alongside or even above traditionally strong brands such as Coca-Cola and McDonald's.

That also explains why we see a lot of advertising and sponsorship from technology brands, especially in service industries (internet search/sales and mobile telecoms providers, for example) where what you're buying is to some extent invisible. In fact, the more you think about it, the more the link between branding and innovation makes a lot of sense. Do readers agree?

more from across site and SHARED ros bottom lb

More from across our site

The renowned food brands were represented by a host of lawyers, including members of the firms’ IP teams
Partners at Bird & Bird and Taylor Wessing discuss how Saudi Arabia offers unique opportunities for firms dealing in IP and tech
Attorneys explain why there are early signs that the US Supreme Court could rule in favour of ISP Cox in a copyright dispute
A swathe of UPC-related hires suggests firms are taking the forum seriously, as questions over the transitional stage begin
A win for Nintendo in China and King & Spalding hiring a prominent patent litigator were also among the top talking points
Rebecca Newman at Addleshaw Goddard, who live-reported on the seminal dispute, unpicks the trials and tribulations of the case and considers its impact
Attorneys predict how Lululemon’s trade dress and design patent suit against Costco could play out
Lawyers at Linklaters analyse some of the key UPC trends so far, and look ahead to life beyond the transition period
David Rodrigues, who previously worked at an IP boutique, said he may become more involved in transactional work at his new firm
Indian smartphone maker Lava must pay $2.3 million as a security deposit for past sales, as its dispute with Dolby over audio coding SEPs plays out
Gift this article