Intellectual Property-Based Finance in the Korean SMES
Inventions and technological advances are the important source of economic growth and the legal systems for IP
are needed to motivate inventors. The legal systems enable innovative entities to earn recognition or financial benefit from
what they invent. IP finance refers to any kind of financing on IP. IP investments, the credit guarantee system, and IP trust are
major parts of IP finance. In this paper, the impact of SMEs’ patents as a proxy measure of technological capability on venture
capital investment was investigated. The results of empirical study showed that “technological capability” measured by patents
had a strong influence on venture capital investment. The legal texts relating to IP trust (technology trust) was also introduced.
Index Terms—Intellectual property, Technological capability, Finance, Investment, IP trust