Skip to content

How Can Product Trademarks Highlight Innovation Development?

What is a Product Trademark?

Product trademarks are signs that distinguish one company’s goods or services from those of other companies. It protects your identity and keeps other companies from stealing your intellectual property. Product trademarks include a product trademark, a service mark, and a trade dress. The value of these assets continues to grow over time. The value of your trademarks increases in tandem with the value of your company and brand. As a result, this article on UCLA Anderson Review explains how the monitoring information of product trademarks may indicate a company’s innovative progress.

How Can Product Trademarks Highlight Innovation Development?

The article opens by claiming that innovation is one of the most crucial foundations of company success. Businesses must continue to innovate in order to maintain a strong position in the industry. However, the article implies that calculating the degree of innovation in a corporation is challenging. It is typically confined, according to the report, to tracking R&D expenditures and providing management input on patent activity. Though this model works for patent-heavy industries like technology and pharmaceuticals, it is far from perfect. Furthermore, the report claims that this strategy is unsuccessful in industries where R&D and patents are not crucial to operations, such as banking and food. This has no solid results other than the narrative that firms in low-patent industries are less imaginative.

According to the article, CEOs of low-patent firms whose primary source of pay is stock options appear to be strongly motivated to innovate, based on a database created by the researchers that track new product trademarks. This was demonstrated because they create a bigger number of new product trademarks, and those new trademarked things appear to contribute to enhanced performance. R&D and patents, according to this research, fail to capture imaginative activity that may result in new commodities. As a result, the researchers investigated new product trademarks as another possible proxy for innovation. According to studies, the greater a CEO’s wealth is based on stock options, the greater the risk that the firm will take. The researchers conclude that providing CEOs with risk-taking incentives promotes higher product innovation independent of patent originality.


The bigger the risk that a company takes, the more driven they are to invent something that is really successful. The preceding text demonstrates how new product trademarks are closely related to an organization’s inclination to innovate.

Different industries get affected differently by the current market. Learn more about the market and its impact in the UCLA Post Graduate Program in Management for Professionals (UCLA PGP PRO).


Back To Top