Intense competition is argued to be a central driving element in pressuring and stimulating firms to innovate and upgrade their competitive advantage. Proximate competitors are able, within a short space of time, to observe each other's moves and counter-moves, enabling them to rapidly imitate each other's products. Psychological factors, such as prestige and pride, also stimulate com- panies to compete actively and to be innovative in their actions.
Although partnerships are becoming increasingly popular, as with any arrangement there is a downside. In the intellectual property business unwind- ing a partnership can be very difficult because it's hard to break up or dismantle ideas and say: "This is ours, not yours". It must be very clear from the start who owns what. This contract is a key responsibility of the partnership manager.
INTELLECTUAL PROPERTY BUSINESS
The type of arrangement that is of most interest to the marketer is when the opportunity is created to jointly market a brand, product or service. Co-marketing partnerships between firms afford fresh opportunity for strategic advantage. Gains in effectiveness can be obtained by reducing power and managerial imbalances. Careful project selection and better matching of potential also help to enhance effectiveness.