EFFECT OF INTELLECTUAL PROPERTY MANAGEMENT AND PERFORMANCE ON SELECTED MANUFACTURING COMPANIES IN SOUTH EAST NIGERIA

CHAPTER ONE
INTRODUCTION
1.1       Background of the Study
Since the beginning of 20th century, the world has witnessed astronomical advancement in scientific and technological innovation which has changed the face of modern society. Innovation has become the key driver of economic growth and development in both medium term and long term. Kubis (2011:36) defines innovation as the process of introducing new products, and services, and production process into the marketplace and creating new profitable enterprises and higher paying jobs on this basis. The popular documentary on "CNN” of Make, Create and Innovate is one of the indications of the importance of innovation in today’s world. 


Even the most read book in the world; the holy Bible establishes it in King James Translation of Revelation, 21: 5; “Behold, I make all things new”. Innovation is thus about having new ways of doing things which usually will emanate from ideas generated by individuals and groups of individuals in their various works of life and even in their everyday life. When these ideas are put into use or into tangible items for use in creation of wealth and other economic value, they become Properties of Intellect.They are thus called Intellectual Property (IP).

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The term Intellectual Property came to lime light in the 19th century. By late 20th century, it became a common place in US literature. Nevertheless, Grant(2010: 17) notes that the usage of the term goes back as far as 1893, at the founding of Swiss federal office for intellectual property. The Paris convention for protection of industrial property (1883) and Berne convention for protecting of library and artistic work (1886) both were separate administrative offices that merged in 1893 and adopted the term intellectual property in their new title (Ige, 2000). Prior to that adoption, towards the end of the 19th century, inventive new ways of manufacturing helped trigger large scale industrialization accompanied by such phenomena as rapid city growth, expansion of railway network, investments of capital and growing trade transaction.  Idris (2012) states that the invention of movable typing and printing press by Johamas Gutenberg around 1440 contributed to the birth of the first copyright system in the world. Sople, (2010) explains that Trademarks are believed to date back to at least 3500 years when potters’ marks were used to identify the source of earthen pots. However, jurisdiction and statutes for the protection of trademarks appear to date back to only 350 years, i.e. seventeenth century in England.

Right from the medieval to several years over, intellectual property started developing. In Roman times, it was common for pottery to be embossed or impressed with a mark, for example a representation of a dolphin or the maker’s initial. Merchant’s marks were used in commerce in Britain from the thirteenth century. William Caxton used the mark W74C, in his Gold and Silver articles and these were hallmark as early as the fourteenth century. By the end of the sixteenth century it was very common for shopkeepers to erect signs illustrating their trade (Nwokocha, 2012:46). Traders took to using cards bearing their name and address, often accompanied by a device of some sort, an early form of what we have today as business card. The industrial revolution saw an enormous growth in the use of names and marks in advertising and thus modern trade mark was born. This marked the early development of the modern Trademark Law.

In the area of patent, the first recorded patent for an industrial invention was granted in 1421 in Firenze, Italy to Architect and Engineer Filippo Brunelleschi. The claim was that he had thought of a better method for transporting goods on the River Aron. He undertook with the Florentine authorities that to divulge details of his new invention he would be granted a monopoly in respect of the exploitation of the invention within Firenze for a number of years (Nwokocha, 2012: 46). After this, any person would be free to exploit the invention or introduce further improvements to the technology.

Copyright awareness on the other hand, arose with the growth of the printing press, and the need for the authors and publishers of popular works to profit for their task. In 1709 the UK Parliament enacted the world’s first Copyright Act, the so-called Statue of Anne. This Act established principles of copyright law which remain valid today and have developed to the current Copyright laws existing in most countries(http://www.wipo.int/about-ip/en/ assessed on 23rd January, 2014).                          

Subsequently, the United National Bureau for protection of intellectual property relocated to Geneva in 1960 and in 1967 the World Intellectual Property Organization (WIPO) was established by a treaty as an agency of the United Nations.  The establishment of WIPO naturally led to sensitization, awareness and growing interest in intellectual property protection. Companies started investing in research and development. The evolution reveals the emergence of 3 basic trends in intellectual property; Research, Development, and Innovation over the decades that follow.  Idris (2012: 19) identifies these trends as follows:
·        Protection has been strengthened, broadened and harmonized internationally especially in the 1980’s

The number of applicants and grants has risen exponentially between 1980’s and 2001 as compared to the previous period especially in United States and United Kingdom. Basically two technical fields contributed to these surge, Information and communication technology, (ICT) and Biotechnology.
·        Innovation has also expanded rapidly. An important indicator is the increase in research and development spending,

Today, intellectual property is a value concept. It forces us to acknowledge value conflicts in public policies of various governments and firm’s and also conflicts of value in inventions, creations and innovations.For many firms in this modern economy, intellectual property is their most important asset not physical property. Companies engage in acquisition of intellectual property due to various reasons. Such reasons as the expected benefit that is accruable to it. Some of these benefits they believe will have a positive effect on the performance of the company and the various indices of performance.  This includes the productivity of the firm, profitability, sustainability, and long term viability of the organization. Marrand Neely(2003) argue that a firm’s value is often partly based on the intangible intellectual capital which is referred to as intellectual property that it possesses. Therefore, most company’s stake holders and operators of industry would naturally and intuitively expect the efficiency of IP utilization to have a direct influence on the performance of firms, thereby constituting an issue of practical interest to managers, stakeholders and shareholders. This also makes it an important area for research. However, the question is, does it actually happen that way? A lot has to be investigated for one to know this. Many writers agree that it does while others disagree.  Again for others, there is no compelling evidence that it does. This has posed few empirical investigations on the relationship between firm performance and IP with difficulties. Zambon (2004:9), states that no universally accepted method of measuring IP exists thereby making quantitative testing of the relationship challenging. There are a few quantitative studies but none of these have evidenced data especially in developing countries.Where data is available, for example in Australia, most studies rarely use it which is surprising as IP reporting disclosure in Australia and most developed part of the world is well described. In Nigeria for example, a lot has been written about IP but few are empirical and the writers not only concentrate on the capital cities of Lagos and Abuja, but also concentrate on the problems of acquisition and enforcement. Other areas like the challenges encountered while operation is going on, the effect it has on performance and the management and control of these rights are rarely seen as an area of interest. However, some go further to check whether IP interacts with the tangible assets to affect firm performance. Accordingly the purpose of this study is to quantitatively examinethe effect IP has on firm’s performance.

If IP is linked to firm performance, firms and investors would benefit from this disclosure. It is probable that the expected future economic benefit will flow to the entity and the cost of the asset can be measured reliably. These requirements are consistent with international standards, yet the criteria are rarely met by IP and so IP is hardly ever disclosed quantitatively in the accounts

Just like the physical properties, intellectual properties also need to be protected. Countries usually establish a system whereby these properties are managed in order to not only benefit those that generated the ideas leading to the establishment of these properties, but also to be used as an economic tool.Northern Italy is said to be the cradle of intellectual property system. In recent time however, more emphasis is being placed on such properties rather than physical properties. It is necessary to note here that even though the term is increasingly used today, it is still little understood. For too many people, it is still an obscured legal concept of little relevance to everyday life. In most developed countries, intellectual property is a novel concept especially for manufacturing companies and public research institutes.Yet when these properties are introduced, they need to be established, protected and generally managed by the inventors, owners and other stake holders like managers and operators of industries. Secondly, the process of protection of these new products cannot again be effectively established without a well-balanced, affordable and reliable system of management thus the management of Intellectual Property. Thirdly, most writers’believe that if IP is linked to firm performance, firms and investors would benefit from this concept. It is also probable that the expected future economic benefit will flow to the entity and the cost of the asset can be reliably measured.

The human capacity for intelligence, creativity, and collaboration produces an abundance of new information, inventions, and artistic creations. As long as these fruits of the mind are afforded legal protection, they constitute intellectual property(Kamil, 2000). In his own contribution, Kubis (2011:9),   states that IP is known in the industrial world as the most valued asset owned by a company because it is generally believed that an investment in knowledge always pays. He goes further to say that  as Ben Franklin quoted, “if a man empties his purse into his head, no man can take it away from him”  Current development  in the global economy have brought the best interest about the ascendency of intellectual property. The brick and mortar economy is being replaced with economy of ideas. In the new global economy, wealth is generated towards harnessing the value of knowledge. The concept of creative enterprise has evolved from ideas, innovations, inventions and knowledge and investors and company/firms are increasingly investing on that.  Innovators thus seek property rights that allow them to own their creativity and innovations in the same way that they can own physical property.

Intellectual property is seen as a key concern in the quest for growth, development andcompetitiveness. Advancement in knowledge broadly conceived is a key driver of economicprosperity in the twenty-first century. The ongoing revolution in information and communicationtechnologies (ICT) has dramatically reduced the costs of creating, processing and transmittingknowledge, both nationwide and across borders. The pace of innovation has acceleratedsignificantly. These developments lead to closer international economic integration and morerapid innovation which create new challenges for IP regimes and policymaking.At the same time, both the innovation processes itself, and the production activities of firms are globalizing rapidly. To be competitive in the globalized economy, the United Nations member states (UN) have tomaintain, adapt and create institutional and legal frameworks conducive to the creation ofknowledge and its commercialization (Adewopo, 2000).Certain rights are thus allowed to these properties which are used to control the usage.

Intellectual property rights have a key role to play in thisregard.This raises challenges in terms of managing, protecting and enforcingintellectual property rights across borders. Belle, (2006) observes thatcountries with economies in transition face additional challenges to the challenges experienced by developed countries. They struggle to integrate into theincreasingly global production networks and to find their own niche in the increasingly globalvalue chains. To be successful, they need to assign high priority to developing their owninnovative capacities, as well as their ability to absorb and adapt technological innovations fromabroad, and to move up the value chain over time. Again, Intellectual property regimes have a key role to play in this regard.Like other property, intellectual property may be commercially exploited.

There are laws on intellectual properties but most people do not know about the existence of such laws while those that know about it do not know how to enforce it when violated due to ignorance or so many other factors militating against it.This situation is applicable mainly to developing countries in which Nigeria is one. Large organizations, industries and manufacturing firms are increasingly seeking intellectual property through investments and research and development. Again, this is applicable mainly to developed countries. In the third world countries, most manufacturing firms do not even have a research and development, (R&D), department. Huge amount of money is spent on research and development and these investments are meant for breakthroughs such that protection against competitors and intruders becomes necessary. In the advanced world, companies invest billions annually in research and development also to differentiate themselves from their competitors and ultimately to offer superior products in terms of quality, cost and future superiority. The result of such efforts however include both tangible and intangible asset such as intellectual property. Intellectual property is thus a significant contributor to a firm’s value.  Gassman, Zeigler, Ruther, and Bader(2012:18), believe that intangible asset can account for more than 70% of a firm’s value. It is therefore a considerable valuable asset for most companies but managers often do not fully appreciate and extract value from those assets. The problem then lies on how to manage and/or implement a plan to successfully turn this substantial market value into cash to meet needs.  Secondly, how does one significantly extract value from it so that it will contribute to a firm’s sustainability, efficiency, and general performance? It is therefore obvious that management of any organization cannot be effectively and efficiently done without protection of these properties.  To protect them, intellectual property rights are obtained as tools to use. These rights also act as incentives to invent or innovate, enhancement of technology innovation andas tools for ensuring equitable and fair utilization of genetic resources (Gassman et al.,2012: 23).
The first industrial property protection in Nigeria was in respect of Trademarks. This was with regards to the trade mark proclamation in1900 by which the UK Trade Mark Act wasmade applicable to the then Protectorate of Southern Nigeria. This wasextended to the entire country following the amalgamation of the Southernand Northern Protectorates in 1914 (Wakhungu. Nyukuri, and Sikoyo, 2009:47)

In respect of patents, in the late 19th and early 20th centuries, patentsregistered in the UK were in Nigeria.The colonial masters first introduced the patent system in the former colonyof Lagos and Southern Nigeria in 1900 by the Patents Ordinance No. 17 of1900 and the Patents Proclamation Ordinance No. 27 of 1900 respectively.The Patents Proclamation Ordinance No. 12 of 1902 introduced similarlegislation in Northern Nigeria. The respective instruments provided for afull-fledged patent office headed by aRegistrar as was provided in the patent acts. However, in Okafor(2012), it is believed thatthe introduction of patent administrative institution was nevermeant to encourage either indigenous inventive activity, local research and development, innovation or to accomplish an effective transfer oftechnology but instead it was geared towards the protection of propertyrights in machinery technology relevant for the exploitation of gold andother mineral and human resources in the colonies thereby enriching their own country.

Following the amalgamation of Southern and Northern Nigeria in 1914, separate legislation for the different regions were repealed andsubstituted by the Patents Ordinance No. 30 of 1916The new law only provided for the registration in Nigeria ofpatents already granted in the UK, an anomaly that persisted even long afterNigeria became independent in 1960. Effectively, Nigerians or otherapplicants had first to apply to the UK patent office to be granted a patentfor an invention before proceeding to Nigeria to have it registered. It alsomeant that it was the UK law that substantively applied to patentapplications and grant in Nigeria up till 1970 (Wutungu, et, al. 2009).In 1970, the Patents and Designs Act No. 60 was enacted.

The Act was modeled on the draft law prepared in 1965 bythe United International Bureau for the Protection of Intellectual Property(BPIP), the precursor of the World Intellectual Property Organization,(WIPO).  Beyond just nationalizing the patent application and grant process,there appeared to be no policy rationale or consideration as such behindadopting the model given that there was no national policy with regard to itsindustrial and technological development (WIPO, 2002) However, despite the fact that thecountry had since articulated its industrial and technological developmentpolicy and plan, these have not yet been reflected in the international propertylaws as the 1970Act is still in force.

1.2  Statement of the Problem
Intellectual Property is an important variable in the economic development of any nation. Its importance in invention, innovation, and creation cannot be overemphasized. Again, the importance of these later concepts in achieving economic growth calls for attention. On the other hand, economic growth cannot be achieved without developing the manufacturing sector.In fact, it is the manufacturing sector that drives the economy of most nations. These firms thus need to perform well in order that the purpose for which they are established will be achieved. In order to achieve this, they must be able to meet with technological changes, thus, the manufacturing companies’ need to be making, creating and inventing products and processes. The creations and inventions having been generated from ideas from human capital is therefore protected using various tools. IP serves as a tool to develop various aspects and various sectors of the economy including Manufacturing Sector, Industrial Sector, Economic Sector, Education Sector and general development of the nation. This has placed it in the fore front of the priorities of economic policies by various governments of various nations especially in the developed economy. However, in Nigeria, the story is different. This is because the country does not seem to recognize the degree of the importance of this concept judging from the attention they ascribe to it. Often times, they relegate it to the background while in the formation and implementation of government policies. Zambon (2004) indicates this in his observation that there are a few quantitative studies of intellectual property in the developing countries because the nature of the relationship between IP and firm performance is a virgin territory. Again, Shakina and Barajas (2000) believe that the phenomenon of intellectual property is growing in importance and the relevance is increasing but some countries are not responding to the sensitization especially developing countries. Furthermore, Nnabuike (2000) in his study believes that the effect ofIP management on research and development department of manufacturing companies attracts benefits but this is not the case with most African countries due to their negative attitude towards the development of R&D offices in their firms.The above situation could however be attributed to a number of factors militating against the nation.Such factors could be found in the following brief text;

Nigeria is still classified as a developing country. In the developed economy, intellectual property is used as a tool for advancing technology innovation but this may not necessarily work in the same way as developing or under developed countries. This is because most developing countries have very low bargaining power and weak technology capabilities. Also factors like corruption, counterfeiting, poverty level and several other facilities that will support the operative system and process of the term militates against its’ potentials.  Secondly, only about one half of corporate leaders in the developing countries understands the values and importance of intellectual properties management and is actively involved in the strategic planning relating to intellectual properties. This limited integration of intellectual property management and strategic planning reflects a number of obstacles.This was observed in a recent survey of executives who manage intellectual property portfolios where respondents indicate these obstacles.

Thirdly, in most developing countries including Nigeria, Intellectual Property has been mismanaged, undervalued, and generally thought of as a concept for the first world countries. This has been an impediment on creations, innovations and inventions. On the other hand, creation, innovation and invention would naturally positively affect an industry’s performance but due to the lack of attention paid to IP in our industries, we often lose the opportunity it provides. People usually look at the challenges which is the difficult task associated with the acquisition and usage of these rights. Most often, they do not look at the benefits accruable to it.

Fourthly, intellectual property management is usually delegated mainly to the hands of legalpersonnel who know little or nothing about strategic management. This is because there is a common view that intellectual property portfolios bears few strategic consequences and therefore does not need managers. Of course this is a wrong perception.


One reason that the cost of doing business in Africa is high is that firms often are required to make additional unofficial payments to ensure a steady supply of public services.  This report focuses on the performance of firms in Nigeria’s manufacturing sector drawing on the United Nation International Development Organisation (UNIDO) firm survey carried out in 2001. The objective of that study was to identify the policy issues that needed to be tackled to reverse decades of poor performance in the economy of developing nations of the world. The incidence of additional payments with regard to public services and licenses and permits actually decreases with firm size.

Another primary problem which has been observed here is the lack of the information necessary to apply the analytic especially with respect to the incentive theory of intellectual property.  To what extent is the production of specific sorts of intellectual products dependent upon maintenance of intellectual property protection?  With respect to some fields, some commentators have agreed that it does to a very little extent. Others also note that other monetary or non-monetary rewards such as profits attributable to lead time, inventors, opportunities to speculate in markets that will be affected by the revelation of their inventions, the prestige enjoyed by artistic and scientific innovators, academic tenure, and the love of art would be sufficient to sustain current levels of production even in the absence of intellectual-property protection. A third group of commentators sharply disagree. The truth is that we do not have enough information to know who is right.  Empirical work however hassuggested that patent rights has been more important in stimulating innovation in certain industries (e.g., pharmaceuticals and chemicals) than in others, but has failed to answer the ultimate question of whether the stimulus to innovation is worth its costs. With respect to forms of intellectual-property protection other than patents, we know even less. Again, those values could be promoted equally well by providing persons rights to land or shares in private corporations.  Consequently, properties may be classified private when followed strictly but the problem still remains that there will be little help in determining which resources to privatize and which to leave to the public. To the extent that intellectual-property rights have economic value and may be bought and sold, gained and lost, may contribute to their owners' abilities to avoid guilt, become autonomous, engage in independent political action, etc., is a huge reason for IP to be managed and protected. Unfortunately, this is not being given the attention it deserves in our country thus leading to huge loss in benefits accruable to it.

A practical guideline on intellectual property issues especially for manufacturing companies, other organizations and institutions would in the opinion of the researcher enrich the understanding of manufacturing industries, scholars, and other stakeholders who are working in the field. It will also go a long way in improving our economic activities and creating wealth both for the innovators, manufacturing companies and the country in general. It will again encourage more innovative activities and encourage the manufacturing firms to perform better. Failure to do so will on the other hand result to further deterioration of the above factors and cause more negative attitude towards creation, innovation and invention which will again lead to negative effect on manufacturing companies thereby affecting the nation negatively. Consequent upon this, the study on the effect of intellectual property management and performance of selected manufacturing firms is being undertaken.

1.3       Objectives of the Study
The general objective of the study seeks to explore the level of understanding of the concept IP in Nigeria especially in the South East Nigeria and toarouse the attention on intellectual property management and its characteristics in the business field and especially in manufacturing companies. Most importantly, the study seeks to look into the activities of manufacturing firms as it pertains to management and control of their intangible assets known as intellectual properties and the way it affects the performance of these firms.The following specific objectives are therefore formulated to help unravel some of the pertinent questions;

1.         To determine the extent to which protection of intellectual property through trade mark affects the market share in manufacturing firms in the south east Nigeria.
2.         To ascertain the degree to which patents induce creativity in manufacturing firms in the same zone.
3.         To establish the level to which intellectual property protection fulfills its mission in manufacturing firms.
4.         To analyze the various risks involved in intellectual property registration to see if they are higher than expected benefits.
5.         To find out the extent to which corporate managers are involved in the management of intellectual property portfolio in their firms and the implications of their involvement especially in the south east Nigeria.

1.4             Research Questions
Based on the objectives of the study the following research questions are formulated to guide the conduct of the study:
  1. To what extent does protection of intellectual property through trade mark affect market share in manufacturing firms in the south east Nigeria?
  2. To what degree do patents induce creativity in manufacturing firms in the same zone?
  3. To what level does intellectual property protection fulfill its mission in manufacturing firms in south east Nigeria?
  4. To what extent are the expected benefits of intellectual property registration higher than the risks involved especially in the south east Nigeria?
  5. To what extent do corporate managers get involved in the management of intellectual property portfolios and what are the implications?


1.5       Research Hypotheses
The hypotheses of any research work are a tentative conclusive statement which when treated leads to the findings of a research work. They are usually stated in form of alternate and null hypotheses. However, Krathwohl (1977) in Polit, and Hungler,(1978:631) points out that, the use of null hypotheses creates an amateurish impression. Polit, et al (1978:637), also observe that null hypotheses are related to statistical logic not to research objectives. It is therefore more desirable to state the researcher’s actual expectations while the null hypotheses are assumed without being explicitly stated. Accordingly, the following research hypotheses are stated to use in proffering solutions to the problem under investigation.
1.            Protection of intellectual property through trade mark positively affects the market share to a very high extent in manufacturing firms.
2.            Patent rights induce creativity in manufacturing firms to a very high degree.
3.            Intellectual property protection significantly fulfills its mission in manufacturing firms.
4.            The expected benefits of intellectual property registration are higher than the risks involved to a very high degree.
5.            Corporate managers do not often significantly get involved in the management of intellectual property portfolios and this result to negative implications.

1.6       Significance of the Study
This study suggests that intellectual property offer a real but in some cases limited incentive to innovate and thus leading to creations of products and processes in some industries and manufacturing firms. At the end of this study, the researcher would have developed a very comprehensive response and insight into these manufacturing companies’ characteristics as regards its intellectual property management and control that other researchers could use to define the boundaries of their studies and make their work more transparent and comparable. Also, much literature and controversy over intellectual property has evolved in recent time but with more emphasis on the legal aspects like policies, and enforcements. However, there is paucity of literature that examines the status of intellectual property and its developmental and management aspects as it affects industrial growth, productivity, performance and competition. Finally, other studies done on intellectual property are based mainly on copyright of books, music, works of art etc.  This paper seeks to address that seemingly neglected area in our firms.

1.7       Scope of the study
 The scope of this study includes Theoretical, Geographical and Time scope respectively.The study deals with the conceptual framework, theoretical framework, and empirical review of all the relevant variables in the topic.The study is on manufacturing firms in the south east Nigeria.It covers the period of year 2000 to year 2011.  However, the origin and evolution of intellectual property both in Nigeria and beyond is still extensively discussed both in the introduction of the paper and the literature review.

The other areas covered in this work are various definitions of various writers of the concept of all the variables in the work including but not limited to Intellectual Property, Management including management of assets in companies, both tangible and intangible assets, Performance and even Manufacturing Companies. Each has his own perception of the concept of these variables but basically, they all point to the same thing; intellectual property as intangible asset, acquisition anduse of intellectual property, intellectual property and performance of firms,  methods of acquisition and application, IP policies in different countries and  effects of intellectual property on different company’s productivity, and profitability. Furthermore discussion on the different types of intellectual property rights (IPR) and their functions for example, Trademark, Trade secret, Patent, Copyright, Traditional Knowledge and Geographical Indication was explored. Theories of intellectual property and performance were also delved into. The work again ventured into other areas like IP valuation, IP theft, decision to innovate and reasons why IP holder should protect his property. Other areas of coverage are various works of other authors on the relationship between IP and performance in manufacturing firms and some other related topics. These areas were also extensively grappled with and their opinions, views, conclusions and findings noted. The study then ventured into the different types of Intellectual Property rights, the rate of acquisition of intellectual property rights in Africa as compared with other parts of the world and finally the institutions that drive the process.

1.8       Limitations of the Study
This research has looked at aspects of intellectual property management and control in manufacturing industries in the south east Nigeria. In the process, it has looked at areas that researchers have explicitly mentioned in their definitions.  These writers seem to be with recognized knowledge and experience in the field of intellectual property. However, the understanding of this problem is limited by several relative weaknesses in the available literature. For example, unlike other forms of property like the physical properties, IP is difficult to identify, allocate and control.  This affects one’s understanding of the magnitude of the problems associated with it thus creating some limitations.

 Secondly, the researcher has only looked at explicit definitions of intellectual property but cannot claim to have developed the complete list of benefits, risks, and roles that an intellectual property management comprises. 
Thirdly, the study focused on the south east Nigeria and therefore not fully generalized.  More revelation could come up if the geographical coverage is widened.
 Finally, by only considering the definitions and conclusions created by authors, rather than the meaning of their work as it relates to the real world as a whole, much of the nuances provided by each paper are missed. A more holistic approach, albeit necessarily more subjective, may provide greater insights. Further research on this area could improve the robustness of the result we anticipate in this study.

1.9       Profile of Selected Organizations                      
The manufacturers association of Nigeria, MAN is grouped into ten, (10) sectorial group with many subsectors. The sectors are;
  • Food, Beverages and Tobacco
  • Chemicals and Pharmaceuticals
  • Domestic and Industrial Plastic, Rubber, and Foam
  • Basic Metal, Iron and Steel and Fabricated Metal Products
  • Pulp, Paper and Paper Products, Printing, Publishing and Packaging
  • Electricals and Electronics
  • Textile, Wearing Apparels, Carpet, Leather/ Leather Footwear
  • Wood and Wood Products including Furniture
  • Non-Metallic Mineral Product
  • Motor Vehicle and Miscellaneous Assembly

           
The research was carried out in some selected manufacturing firms in the South East Nigeria. The south east Nigeria is made up of five (5) states. The states are Anambra, Abia, Ebonyi, Enugu and Imo states. A purposeful technique was employed in selecting companies for inclusion in this research with each statebeing represented. Secondly, the seven firms were selected from different sectors thereby covering a wide range of the sectors. These firms are;

  1. Jacobs Wine Umuahia Abia, representing Food Beverage and Tobacco Group.
  2. General Cotton Mill Onitsha Anambra, which represents textile Wearing Apparels, Carpet, Leather/Leather Foot Wear Group.
  3. Ofali Rural Industries Limited Ebonyi, representing Non Metallic Mineral Products Group.
  4. Hardis and Dromedas Limited Emene Enugu, representing Chemicals and Pharmaceutical Group
  5. Pittason Industries Nigeria Limited Imo representing Domestic and Industrial Plastic and Rubber Sectoral Group.
  6.  Alo Aluminium Manufacturing Company Limited representing Basic Metal, Iron and Steel and Fabricated Metal Products
  7. NgoBros Company Nigeria Limited representing Pulp, Paper and Paper Products, Printing, Publishing and Packaging


1.9.1   Profile of Jacobs Wine Nigeria Limited
 The company was established in year 2000 and it is located at Frank Jacobs Avenue, Umuahia Abia State. The products the firm manufactures are wines, Spirit, Starch, and Juice which belong to the sectorial group of Food, Beverages and Tobacco while the sub sector is distillery and blending of spirit.  Umuahia is the state capital of Abia state and this makes for easy disposal of their products after manufacturing. This is because being a state capital, so many activities in form of Social, Business and Religious activities which attract the usage of the products offer the company the opportunity of having high sales turnover. Their email address is Click Here to see it

1.9.2   Profile of General Cotton Mill, (GCM) Onitsha
GCM as it is branded was established in th eyear 1987, by Chairman/ Founder Sir Daniel Chukwudozie and incorporated in 1989. It is located at Habour industrial layout Onitsha Anambra state. They are into the production of textiles especially wrappers. The subsectorial group is textile, Wearing Apparels, Carpet, and Leather/Leather Foot Wears. They have distribution offices located in different parts of the country. Part of the prosperity of the industry is that it has a location advantage of being in one of the biggest commercial cities of the south east Nigeria. Secondly, their major product is textile wrapper which attracts the attention of any Igbo woman in the high, middle, and/or low class.


1.9.3   Profile of Ofali Rural Industries Limited
Ofali Rural Industries is located at Mgbo village in Abakaliki, Ebonyi State.  It was established in year 2008 and has been in operation from that time till date. However, it got incorporated and registration with MAN in the year 2003 and 2011 respectively. The founder/Chairman is Dr., Victor Ndu. With the topography of Abakiliki city, the industry location is a huge advantage. Their products are Granites aggregate and quarrying and they belong to the non-metallic mineral products sectoral group. Their email address is Click Here to see it

1.9.4   Profile of Hardis and Dromedas Limited
The company is located in Emene Enugu at km 11 airport road.  It was established in 1986, incorporated in 1993 and registered with MAN in 1994. Their main products are mainly hygiene products like Germicides, Cosmetics, Soap, and Plastics and these put them in the sectorial group of chemicals and pharmaceuticals. Hardis and dromedas is one of the first indigenous manufacturing firms to be reputed with quality and reliability in the Nigerian market. The chairman/founder is Dr. Chike Obidigbo. Their email address is Click Here to see it


1.9.5   Profile of Pitason Industries Nigeria Limited
 Pitason industry limited is located at 14 Old Express Rd/km. 6 in the old Aba Owerri road in Umungasi, Aba.  The industry was established in the year 1991 and incorporated in 1994. They are into the production of Shoe Soles, Recycled PVCs and Handbags and are grouped into thesub sector of Domestic and Industrial Plastics. Aba, being one of the big commercial centers in the south east Nigeria, is a very good place for citing any industry. Their email address is Click Here to see it

1.9.6     Profile of Alo Aluminium Manufacturing Company Limited
Alo Aluminium Manufacturing Company Limited belongs to the sectoral group of Basic Metal, Iron and Steel and Fabricated Metal Products. The industry is into the production of Long Span Roofing Sheets, Accessories, and Installations. In this recent time when construction is booming in the country especially in the south east and south south, the industry is experiencing a lot of challenges with other firms fervently competing by placing their products side by side with that of Alo.  The industry issituating at Km 16Enugu Abakiliki express way opposite Mobil Filling Station. Its corporate office is also domiciled in the same location. Founded by Chief Sir Alexander Ani,the industry was established in 1994, was incorporated in 1991 and registered with the manufacturers association of Nigeria in year 1994with Registration/Corporation Number, RC of 162656 and Brand name Alo. The company’s email address is Click Here to see it

1.9.7     Profile ofNgoBros Company Nigeria Limited
NgoBrosand Company Nigeria Limited is an industry that deals with the production of Baby Diapers. It was founded by Chief Sir Humphery Ngonadi who is currently the Chairman/Managing Director of the company. The factory is situating at Nnewi Anambra State precisely at 71-78 Obadiah Road Nnewi. It belongs to the sectoral group of Pulp, Paper and Paper Products; Printing, Publishing and Packaging. It uses two brand names, Diap and Bigoz with RC number 72770.  Established and Incorporated in 2000 and 2001 respectively, the company registered with the Manufacturers Association of Nigeria in 2003. Being one of the first companies to go into the manufacturing of baby diapers in the south east Nigeria, it has a lot of challenges though enjoying some degree of monopoly. Its email address is… Click Here to see it

Sources: Personnel Department of the Firms under Study.
·        Manufacturers Association of Nigeria Directorate Enugu Branch, 2013 Pages 9-16
·        Manufacturers Association of Nigeria Directorate Imo and Abia Branch, 2014 Pages 10-12
·        Manufacturers Association of Nigeria Economic Review, January to June 2013

1.10    Operational Definition of Terms
This definition section defines key terminology utilized in this work, including but not limited to the following terms:
Appropriability: This refers to the ability or the possibility to capture returns from Research and Development (R&D) Investments. Simply put, it is a company’s ability to control and apportion profits accruable from its innovation, creation and investments.  The methods used for this control are the use of Intellectual Property Rights.
Background Technical Data: This means information, in hard copy or in electronic form, including, without limitation, documents, drawings, models, designs, data memoranda, tapes, records, and databases developed

Defensive Publishing: Defensive Publishing denotes publication of an invention with the purpose of creating prior arts and therefore preventing patents being granted on the same invention. One of the fundamental pre-condition for appropriation from own use of an invention is giving freedom to operate and one way to do that is to make the invention public. This is called defensive mechanism.
Digital Rights Management, (DRM): This is the Intellectual Property Rights that are usually obtained and used for the management of Information Technology, (IT). However, crackers still succeed in disintegrating them.

Intellectual Property: An intangible asset that can be owned by an individual, a group of individual, a family, a community or in this case an organization. Intellectual Propertyalso means technical information, inventions, developments, discoveries, know-how, methods, techniques, formulas, algorithms, data, processes and other proprietary ideas (whether or not patentable or copyrightable).  Intellectual Property also gets protection by using patent applications, patents, copyrights, trademarks, mask works, trade secrets, and any other legally protectable information, including computer software protection.

Tangible Research Property, (TRP) means those tangible items produced in the course of system research that can be physically distributed including such items as Biological Materials, Engineering Drawings, Equipment Integrated Circuit Chips, and Computer Data Base. 

Nano - Technology: This is a technology that is used to develop applications in diverse areas like the Economy, Health, Environment, Education etc. Nano Technology Companies are companies that use this technology


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