品牌、专利和公司绩效研究（英文）

May2023

Brands,patentsandcompanyperformancestudy

Dointangibleassetslikebrandsandpatentshelpcompaniesoutperformtheirpeers?

Ananalysisoftheworld’sandSingapore’slargestlisted-companies

OFFICIAL(OPEN)/NON-SENSITIVE

Copyright©IPOS2023.Allrightsreserved.

2

Outline

.Methodologicaloverviewandan

introductiontointerpretingourcharts

.Findings

.Statisticalkeyfindings

.Globalperspective

.Singaporeperspective

.Annex

Dointangibleassetslikebrandsandpatentshelpcompaniesoutperformtheirpeers?

Ananalysisontheworld’sandSingapore’slargestlisted-companies

Introduction

.Thisanalysisdrewasampleoftheworld’sandSingapore’slargestlisted-companies,andidentifiedthosecompaniesthatweretheownersofthemostvaluablebrandsand/orlargestpatentportfolios.

.Theobjectivewastodeterminewhetherthosecompanieswiththemostvaluablebrandsand/orlargestpatentportfoliosoutperformedtheirpeersin(i)revenue,(ii)netprofitand(iii)marketcapitalisation.

.Thisanalysisfoundthat,onaverage,thosecompanieshadaboutdoubletherevenue,netprofitandmarketcapitalisationthantheirpeers.Those

companiesoutperformedregardlessofwhethertheyweremore“tangibleassetlight”ormore“tangibleassetheavy”companies.

.ForSingapore’slargestlisted-companies,wealsofoundthatthosewith

boththemostvaluablebrandsandthelargestpatentportfolios

outperformedtherestofthecohort,includingthosethatownedthemostvaluablebrandsbutnotthelargestpatentportfolios.

.Ourfindingssuggestthatintangibleassetslikebrandsandpatentssupportcompaniesinsecuringacompetitiveadvantage,contributingtohigher

revenues,profitsandmarketcapitalisation.

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3

Literatureoverview

StudiesbyIntellectualProperty(IP)OfficesontheintersectionbetweenIPrightsandeconomicoutcomes

A.IP-intensiveindustries

.IP-intensiveindustriesaredefinedasindustrysectorsthathaveabove-averageownershipofIPrightsperemployee.

.IntheUS,IP-intensiveindustriesaccountedfor41%shareofGDPand33%shareofemploymentin2019.Thiswasupfrom

35%shareofGDPand19%shareofemploymentin2010.ArecentstudyalsofoundthatIP-intensiveindustriesintheUSweremoreresilientduringtheCOVID-19pandemic,withfewerjoblossesascomparedtonon-IP-intensiveindustries.

.InEurope,IP-intensiveindustriesaccountedfor47%shareofGDPand30%shareofemploymentintheperiod2017-2019.Thiswasupfrom46%shareofGDPand29%shareofemploymentintheperiod2008-2010.

.IntheUK,IP-intensiveindustriesaccountedfor27%shareofGDPand16%shareofemploymentintheperiod2014-2016.

.InSingapore,IP-intensiveindustriesaccountedfor49%shareofGDPand38%shareofemploymentintheperiod2011-2013.

B.IPrightsandfirmperformance

.Studiesbythe(a)EUIPO&EPOand(b)IPAustraliacomparedtheeconomicperformanceofcompaniesthatownIPwiththosethatdidnot:

a)InEurope,companiesthatownedIPhad20%higherrevenueperemployeeandpaid19%higherwages.b)InAustralia,companiesthatownedIPhaddoubletheprofitperemployee.

Source:(A)USPTO-IntellectualPropertyandtheU.S.Economy:2022,2016,and2012;EUIPO&EPO-IPR-intensiveindustriesandeconomicperformanceintheEuropeanUnion,2022,2019,2016,and2013;

UKIPO-UseofIntellectualPropertyrightsacrossUKindustries,2020;IPOS-IntellectualPropertyRights(IPR)IntensiveIndustriesstudy,2015;(B)EUIPO&EPO-Intellectualpropertyrightsandfirmperformance

inEurope:aneconomicanalysis,2021;IPAustralia-Intellectualpropertyrights,businessprofitabilityandcompetitionintheAustralianeconomy,2020.

Copyright©IPOS2023.Allrightsreserved.

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Methodologicaloverview

OurapproachtofurtherexploretheintersectionbetweenIP,intangibleassets(IA),andfirmperformance

Wewantedtoexplore,amongthelargestlisted-companies,whetherthosewiththemostvaluablebrandsand/orlargestpatentportfoliosachievedbetterfinancialoutcomes,intermsofrevenue,profitandmarketcapitalisation.

.Ourapproachfocusedontheworld’sandSingapore’slargestlisted-companieswhere:

.Financialinformationwerereadilyavailable,

.Equitylistingsallowedforcomparisoninmarketcapitalisation,

.Externalrankingswereavailableasinputs.Theseincluded:

.ForbesGlobal2000,anditsmethodology,toidentifythe100largestcompaniesgloballyandinSingapore,

.BrandFinanceGlobal500andSingapore100brandvaluerankingstoidentifythemostvaluablebrandsgloballyandinSingapore,

.TheuseofBrandFinancerankingsallowedfortheopportunitytoexplorebrandvalue(inplaceoftrademark

filings)withfirmperformance.Thiswasonthenotionthatbrandvaluemaybeaconceptuallyclosermeasureofatrademark’svaluetoafirm.

.DataandmetricsfromBrandFinancewerealsousedbyWorldIntellectualPropertyOrganisation(WIPO)asinputsfortheirGlobalInnovationIndex.

.IFIClaimsPatentsServicesGlobal250rankings,anditsmethodology,toidentifythetop100organisationswiththelargestpatentportfolios(byactivepatentfamiliesownedbythecompanyanditssubsidiaries)globallyandin

Singapore.

.Overall,theanalysesweredescriptive.Medianwasusedtomeasurecentraltendencyandtocomparethefinancialmetricsbetweencohorts.Theapproachallowedformorevisualpresentationandinterpretation,whichwehopewouldalsoallowforgreatertransparency,andforthereadertointerpretanddrawconclusions.

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Methodologicaloverview

Todrawtheglobalperspective

Ourapproachtoidentifytheworld’slargestlisted-companiesthatownedthemostvaluablebrandsand/orheldthelargestpatentportfolios.

.ForbesGlobal2000listedandranked2,000public-listedcompaniesacrosstheworldbysize.Sizewasderivedbasedonfourfinancialmetrics–revenue,netprofit,totalassetsandmarketcapitalisation–witheachmetricassignedequalweight.

.Rankingsinthetwomostrecenteditions(2021and2022)ofForbesGlobal2000wereaveragedandre-ranked.Thetop100companiesbasedontheaveragedrankwereshortlisted.Thesecompaniesweretermedthe“world’stop100largestlisted-companies”forthisstudy.

.Fivefinancialmetrics–revenue,netprofit,totalassets,netassetsandmarketcapitalisation–weresourced.Two-yearaveragesofthefinancialmetricswereusedforthisstudy.Revenue,netprofit,totalassetsandnetassetswereforthetwomostrecentannualfinancialstatementsavailableasatApril2022.MarketcapitalisationwasasatApril2021and2022.Dependingonthe

financialyear,themetricscouldreflecteconomicconditionsbetween2Q2019and1Q2022.

.Globalbrandsthatwererankedtop100mostvaluableinboththe2021and2022editionsofBrandFinanceGlobal500Brandsweremappedtotheworld’stop100largestlisted-companies(asparentowners;forexample,Googlewouldbemappedto

Alphabet).48outofthe100companieswereparentownersofbrandsrankedtop100inboththe2021and2022editionsofBrandFinanceGlobal500Brands.Wedefinedthesecompaniesasthosethatownedthemostvaluablebrands.

.Organisationsthatwererankedtop100inboththe2021and2022editionsofIFIClaimsPatentServicesGlobal250rankingsweremappedtotheworld’stop100largestlisted-companies.TheGlobal250rankedorganisationsbasedonthenumberofactive

patentfamiliesheldbytheorganisationanditssubsidiaries(majorityowned)asatJan2022and2023.20outofthe100companiesmetthecriteria.Wedefinedthesecompaniesasthosethatheldthelargestpatentportfolios.

.Thecombineddatasetwasusedforanalysis,withmedianadoptedasmeasureofcentraltendency.

Source:ForbesGlobal2000,2021and2022editions;BrandFinanceGlobal500Brands,2022and2023editions;IFIClaimsPatentServicesGlobal250,2021and2022editions.

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6

Methodologicaloverview

TodrawtheSingaporeperspective

OurapproachtoidentifySingapore’slargestSGX-listedcompaniesthatownedthemostvaluablebrandsand/orheldpatents

.Theinitialsamplecomprisedof310SingaporeExchange(SGX)Mainboard-listedcompanies,includingRealEstateInvestment

Trusts(REITs),thatmetthefollowingrequirements:Singapore-incorporated;primary-listing;notsuspendedasatend-November2022;counterlistedsinceNovember2020withatleast2yearsofauditedfinancials.

.Thefollowingfinancialmetricsweresourced–revenue,netprofit,totalassets,netassetsandmarketcapitalisation.Revenue,netprofit,totalassetsandnetassetswereforthetwomostrecentannualfinancialstatementsavailableasatendNovember2022,

withmarketcapitalisationasatthetwofinancialyear-enddates.Two-yearaveragesofthefinancialmetricswereused.Dependingonthefinancialyear,themetricscouldreflecteconomicconditionsbetween4Q2019and3Q2022.

.AcompositeindextoapproximatecompanysizewasderivedbasedontheForbesGlobal2000methodology.Fromthederived

index,thetop100rankedwereshortlisted.Thesecompaniesweretermed“Singapore’stop100largestSGX-listedcompanies”forthisstudy.

.Singaporebrandsthatwereidentifiedastop100mostvaluableSingaporebrandsinboththe2021and2022editionsofBrand

FinanceSingapore100weremappedtoSingapore’stop100largestSGX-listedcompanies(asparentowners;forexample,ScootwouldbemappedtoSingaporeAirlines).49outofthe100companieswereparentownersofbrandsrankedinboththe2021and2022editionsofBrandFinanceSingapore100.Wedefinedthesecompaniesasthosethatownedthemostvaluablebrands.

.ThenumberofactivesimplepatentfamiliesheldbySingapore’stop100largestSGX-listedcompaniesandtheirsubsidiaries

(majorityowned)weresourcedusingthePatSnapdatabase.TheapproachreplicatedthatusedbyIFIClaimsPatentsServicesGlobal250.30outofthe100companieswereparentownersofatleastoneactivesimplepatentfamily(asatearly2023).Wedefinedthesecompaniesasthosethatheldthelargestpatentportfolios.

.Thecombineddatasetwasusedforanalysis,withmedianadoptedasmeasureofcentraltendency.

Source:SGXStockFacts;Companyannualreports;BrandFinanceSingapore100,2021and2022editions;PatSnap.

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7

Beforewestart

Howtointerpretateourcharts

.Eachdata-pointrepresentsacompany.Atotalof100data-points,representingthetop100largestcompanies,wereplotted.In

thisplot,Applewouldbefoundonthetoprightcorner.Data-pointsinorangerepresentedcompaniesthathadthemostvaluablebrandsand/orheldthelargestpatentportfolios.

.Thebold-lineinblackrepresentedthemedian-valuesforthexandy-axisforall100companies.Inthisplot,thex-axisismarketcapitalisationandthey-axisisnetprofit.Thedotted-lineinorangerepresentedthemedian-valuesforcompaniesthathadtopbrandsand/orheldthelargestpatentportfolios.Thedotted-lineintealrepresentedthemedian-valuesforcompaniesthatdidnothavethemostvaluablebrandsand/orheldthelargestpatentportfolios.

.Thescatterplotwassplitintofourquadrantssegregatedbythemedianxandy-axisvaluesforall100companies(bold-lineinblack).For

example,quadrant2(“Q2”),ontopright,representedallcompanieswithx-axisvalueabovemedianandy-axisvalueabovemedian.

.Countswereprovidedintheboxonthebottomright.Thenumberoftop100largestcompaniesineachquadrantispresentedinblack,withthenumberofcompaniesthathadthemostvaluablebrandsand/or

heldthelargestpatentportfoliosinorange.Theshareofcompaniesineachquadrantthathadthemostvaluablebrandsand/orheldthe

largestpatentportfolioswaspresentedinbrackets.Intheplotshown,52outofthe100largestcompanieshadthemostvaluablebrands

and/orheldthelargestpatentportfolios.Inthe“Q2”quadrant,29(or74%)ofthe39companiesinthequadranthadthemostvaluable

brandsand/orheldthelargestpatentportfolios.

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World’sTop100

8

Median,USDbillions

RevenueNetProfitMarketcapitalisationTotalassets

125.4

618.6

205.7

15.7

2.2x

1.9x

0.4x

2.3x

57.8

8.2

274.3

90.1

WithStrongBrandsand/orPatents

WithoutStrongBrandsand/orPatents

“Withstrongbrandsand/orpatents”:Companiesthatweretheownersofthemostvaluablebrandsand/orlargestpatentportfolios.

Financialmetricsweretwo-yearaverages.“WithStrongBrandsand/orPatents”,n-size:52;“Withoutstrongbrandsand/orpatents”,n-size:48.

Source:ForbesGlobal2000,2021and2022editions;BrandFinanceGlobal500Brands,2022and2023editions;IFIClaimsPatentServicesGlobal250,

Globalcompanieswithstrongbrandsand/orpatentportfolioshadaboutdoubletherevenue,netprofitandmarketcapitalisation

.Amongtheworld’stop100largestlisted-companies,thosewiththemostvaluablebrandsorheldthelargestpatent

portfoliosoutperformedtheirpeers.

.Onaverage,thosecompaniesgenerated2.2xmorerevenue,1.9xmoreprofitandhad2.3xhighermarketcapitalisation.

.However,thosecompaniesgeneratedthesegainswith0.4xlowertotalassets.

.Thereisacleardisconnectbetween

performanceandtheassets

(predominantlytangibleassets)usedtodriveit–adisconnectthatsuggestsitisintangibleassetsthatdriveperformanceoftoday’scorporategiants.

2021and2022editions.

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6,229

134

2,501

1.8x

2.4x

76

2.8x

2.7x

447

2,255

936

9

Singapore’sTop100

Singaporecompanieswithstrongbrandsand/orpatentportfolioshadaboutdoubletherevenue,netprofitandmarketcapitalisation

.AmongSingapore’stop100largestSGX-listedcompanies,thosewiththemostvaluablebrandsorownpatented

technologiesoutperformedtheirpeers.

.Onaverage,thosecompaniesgenerated2.4xmorerevenue,1.8xmoreprofitandhad2.7xhighermarketcapitalisation.

.However,unliketheglobalcohort,thosecompanieshavemoreassets(by2.8x).*

.ThosetopSingaporecompanies,while

pre-dominantlyin“tangibleassetheavy”sectorslikefinancialservicesorreal

estate,recognisedtheimportanceof

buildingbrandsandusingtechnologytosecureacompetitiveadvantage,

contributingtohigherrevenues,profitsandmarketcapitalisation.

*Refertoslide14.

Copyright©IPOS2023.Allrightsreserved.

Median,SGDmillions

RevenueNetProfitMarketcapitalisationTotalassets

1,069

WithStrongBrandsand/orPatents

WithoutStrongBrandsand/orPatents

“Withstrongbrandsand/orpatents”:Companiesthatweretheownersofthemostvaluablebrandsand/orlargestpatentportfolios.

Financialmetricsweretwo-yearaverages.“WithStrongBrandsand/orPatents”,n-size:58;“Withoutstrongbrandsand/orpatents”,n-size:42.Source:SGXStockFacts;Companyannualreports;BrandFinanceSingapore100,2021and2022editions;PatSnap.

OFFICIAL(OPEN)/NON-SENSITIVE

Netprofit(USD,mil)(logscale)

Microsoft

Q2

SaudiAramco

Apple

Alphabet

n=52/100

Q1

4/11(36%)

World’sTop100

10

Companyperformanceisnolongerdrivensolelybytangibleassets

.Whilecompanyperformanceintermsofprofitabilityintherecentpastisonlyoneofmanypotentialfactorsthatinfluenceshowinvestorsmayvalueacompany,wewouldexpecttofindcorrelationbetweenthetwo(although,companiescould

continuetobehighlyvalueddespite

recentlossesifinvestorsexpectstrongfutureperformance).

.Apositivecorrelationcouldindeedbe

observedbetweennetprofitandmarketcapitalisationamongourlistofthe

world’stop100largestcompanies.

.Companiesthathadthemostvaluable

brandsorheldstrongpatentportfolios

wereonthehigher-endofthespectrum–with74%representationinthe“Q2”

quadrant(i.e.,withaboveaveragenetprofitandmarketcapitalisation).

Copyright©IPOS2023.Allrightsreserved.

100,000

Q1

10,000

Q2

29/39(74%)

Q3Q4

Q3

15/39(38%)4/11(36%)

1,000

10,000

100,000

1,000,000

Marketcapitalisation(USD,mil)(logscale)

OFFICIAL(OPEN)/NON-SENSITIVE

Netprofit(USD,mil)(logscale)

Microsoft

Amazon

Q1

Apple

abet

sungGroup

MetaPlatforms

Alph

Sam

TencentHoldings

n=52/100

Q1

Q2

15/23(65%)

18/27

Q3

Q4

Q3

16/27(59%)

3/23

(67%)

World’sTop100

11

Thedisconnectsuggestsanotherassetclassinplay

.However,thecorrelationwaslessevidentwhennetprofitswasplottedagainsttotalassets.

.Traditionally,tangibleassets(factories,machinery,etc.)wererequiredtocreatemoreproducts,bringinmoresalesandgrowprofits,andthereforecorrelationbetweentotalassets(whichcaptured

mostlytangibleassets)andperformanceindicatorslikerevenueorprofitcouldbeexpected.

.Butamongtheglobalgiantsoftoday,therelationshipbetweentangibleassetsandperformancehasweakened.

.Thedisconnectsuggestsanalternative

sourceofassetswasusedtogenerate

valueandachievecompetitiveadvantage.

Copyright©IPOS2023.Allrightsreserved.

100,000

Q2

10,000

(13%)

1,000

10,000

100,000

1,000,000

10,000,000

Totalassets(USD,mil)(logscale)

OFFICIAL(OPEN)/NON-SENSITIVE

Marketcapitalisation(USD,mil)(logscale)

Microsoft

1,000,000

100,000

(79%)

(45%)

10,000

World’sTop100

12

Ourfindingssuggestthatintangibleassetslikebrandsandpatentshelpcompanies

outperform

.Similarly,correlationwasalsolessevidentwhenmarketcapitalisation(i.e.,afirm’smarketvalue)wasplottedagainstnet

assets(i.e.,afirm’sbookvalue).

.BrandFinance,basedonthedifferencebetweenenterprisevalueandtangibleassetvalue,estimatedglobalintangibleassetvaluetobeatUS$57trillionin

2022.1

.OceanTomo,basedonthedifference

betweenmarketcapitalisationandnet

tangibleassetvalue,estimatedthatin

2020,90%ofS&P500marketvaluewereinintangibleassets.2

.Amongtheglobalgiantsoftoday,

companiesappeartobedrivenbytheirintangibleassets.

1GIFT2022,BrandFinance.2OceanTomoIAMVStudy.

Copyright©IPOS2023.Allrightsreserved.

Q1Apple

TaiwanSemiconductor-

Q2

AmazonAlphabet

MetaPlatforms

TencentHoldings

Q3

n=52/100

Q1

11/22(50%)

Q3

9/28(32%)

Q222/28

Q410/22

10,000

100,000

1,000,000

Netassets(USD,mil)(logscale)

OFFICIAL(OPEN)/NON-SENSITIVE

Netprofit(USD,mil)(logscale)

100,000

Q2

ICBC

Q2

18/27(67%)

Q4

3/23(13%)

Ch

inaConstructionBank

JPMorganChase

Bank

●Bank

n=52/100

Bank

Q1

15/23(65%)

Q3

16/27(59%)

10,000

1,000

World’sTop100

13

Regardlessofassetsize,strongbrandsandpatentshelpglobalcompaniesdeliverstrongerprofits

.Webelievethatintangibleassetshelpcompaniesin“tangibleassetheavy”sectorsaswell.

.Comparethe“Q2”and“Q4”quadrants.

Bothquadrantscomprisedofcompanies

thatwereassetheavy–butofthosethatachievedhigherprofits(i.e.,“Q2”

quadrant),alargerproportionof

companieshadthemostvaluablebrands

and/orthelargestpatentportfolios(67%,ascomparedto13%inthe“Q4”quadrant).

.Forexample,bankswithtopbrandslikeICBC,ChinaConstructionBankandJP

MorganChaseoutperformedotherbanksofsimilarasset-sizebutwithless

recognisedbrands.

.Intangibleassetsbenefitallcompanies,regardlessofassetsize.

Q4

10,000

100,000

1,000,000

10,000,000

Totalassets(USD,mil)(logscale)

Copyright©IPOS2023.Allrightsreserved.

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Marketcapitalisation(SGD,mil)(logscale)

14

Singapore’sTop100

Singapore’slargestcompaniesaremostlyin“tangibleassetheavy”sectors

.Thedisconnectbetweenmarket

capitalisationandnetassetsamong

globalleaderswasnotasevidentamongSingapore’slargestSGX-listedcompanies.

.Thismaybeduetothesectoralprofileofthecompaniesinoursample.

Forinstance:

.36%bycountand24%bymarket

capitalisationwerecompaniesinreal

estate,includingREITs.Noneofthe100companiesintheglobalsamplewere

dedicatedrealestatecompanies.

.Banks,thoughfewerinnumbers,weredominantintermsofmarket

capitalisationwith35%share.

.ThissuggeststhatalargerproportionofSingapore’slargestcompanieswerein“tangibleassetheavy”sectors.

Copyright©IPOS2023.Allrightsreserved.

100,000

10,000

1,000

100

Q2

Q1

n=58/100

Q2

31/40(78%)

Q4

5/10(50%)

Q1

8/10(80%)

Q3

14/40(35%)

Q3

1,000

100,000

100

10,000

NetAssets(SGD,mil)(logscale)

OFFICIAL(OPEN)/NON-SENSITIVE

Marketcapitalisation(SGD,mil)(logscale)

15

Singapore’sTop100

Evenso,intangibleassetshavebenefitedthemtoo

.Nonetheless,andsimilartotheglobalprofile,companiesthatownedtop

brandsandheldpatentstendtoout-perform.

.Comparethe“Q1”and“Q2”quadrants(whichhadaboveaveragemarket

capitalisation)withtherest–both

quadrantshadcloseto80%

representationofcompaniesthatownedtopbrandsandheldpatents.

.DBS,OCBCandUOBwererankedtop3mostvaluableSingaporebrandsbyBrandFinanceinthelasttwoyears.

.SingtelandWilmarInternational,apartfrombeingrecognisedfortheirbrands,werealsoamongthelargestactive

patentfamilyholdersamongthe100companies.

Copyright©IPOS2023.Allrightsreserved.

100,000

10,000

1,000

100

Q2

(78%)

(50%)

Q1

DBS

Singtel一

WilmarInt

OCBC

-UOB

Q3

n=58/100

Q231/40

Q45/10

Q1

8/10(80%)

Q3

14/40(35%)

1,000

100,000

100

10,000

NetAssets(SGD,mil)(logscale)

OFFICIAL(OPEN)/NON-SENSITIVE

Marketcapitalisation(SGD,mil)(logscale)

16

Singapore’sTop100

Infuture,moreintangibleasset-drivencompaniescouldemerge

.Thecontrastwiththeglobalprofile*

suggestsapossibilitythatmore

intangibleasset-drivencompaniescouldgrowinsizeandemergeintothetop100.

.Ifso,overtime,wecouldobservea

movementofcompaniestowardsthe

“Q1”quadrant(similartoApple)orclosetotheborderbetween“Q1”and“Q2”

quadrants(similartowhereweseeMicrosoftorAmazon).

*Inreferencetoslide12.

Copyright©IPOS2023.Allrightsreserved.

100,000

10,000

1,000

100

Q2

Q1

Overtime,theprofileof

Singaporecompanies

couldmovetowardsthe

globalprofile,where

moreintangibleasset-

drivencompanieswere

(“Q1”and“Q1-Q2”

border).

1,000

100,000

100

10,000

NetAssets(SGD,mil)(logscale)

OFFICIAL(OPEN)/NON-SENSITIVE

Marketcapitalisation(SGD,mil)(logscale)

17

.Asobservedintheglobalprofile*,

“tangibleassetheavy”companiesstandtogainfrombuildingtheirintangiblesaswell.

.Overtime,“tangibleassetheavy”

Singaporecompaniesthatdidnotinvestenoughintheirintangiblesfor

competitiveadvantageandproductivitygainsmayslowlylagbehindtheirpeers,andmissthepotentialforgreatervaluecreation.

.Thegiantsoftodayshouldlookinto

buildingtheirintangibles–both

institutionalcapabilitiesandassets–thatcangeneratevalueforthefuture.

*Inreferencetoslide13.

100

100,000

10,000

1,000

Q2

Singapore’sTop100

Inaddition,tangibleassetheavycompanieswillrecogniseintangiblesasadifferentiator

Q1

Singaporecompaniesthatdo

notinvestenoughontheir

intangiblesmaygradually

loseouttotheirpeersand,

similartosomecompaniesin

theglobalprofile,move

towardsthisquadrant.

1001,00010,000100,000

NetAssets(SGD,mil)(logscale)

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18

Limitationsandconsiderations

.Wewouldhighlightthefollowingslimitationsofouranalysis:

.Astheapproachutilisedwasdescriptive,theapproachdidnotincorporateempiricalcontrols(i.e.,toremoveeffectsfromexternalfactorslikedifferencesinindustries,economicconditions,etc.).

.Alongerdataperiod(beyond2yearsused)wouldaddmorerigour,especiallyinconsiderationofthestateoffluxinglobaleconomicconditionsovertheanalysisperiodused.

.Theanalysiswasrestrictedtothetop100largestcompanies,thusitwasasmallsample.Partofthereasonforthis:

.Controlforfirm-size.Typically,financialmetricswereadjustedtocontrolforfirm-size(forexample,bydividingthefinancialmetricsbythenumberofemployees).Aswedidnothaveemploymentdata,wedidnotdoso.Instead,byrestrictingtothetop100largest,weworkedontheassumptionthatthecompanieswithinwerecomparableinsize.

.Aswereliedonexternalrankings,wewerelimitedbythenumberofcompanies/brandsincludedintheexternalrankingsreferenced.Thus,wedecidedtoperformtheanalysisonacommon“top100”pool–i.e.,thetop100

largestcompanies,thetop100mostvaluablebrandsandthetop100organisationswiththelargestactivepatentfamilies.Wehavealsousedtwoyearsofrankingstomakethe“top100”selectionmorerobust.

.Wewouldnotethattheuseofexternalrankingsresultedinbinaryoutcomes(i.e.,acompanywaseitherinthetop100

rankingsornot)butthattheunderlyingmetrics(i.e.,brand-valueandsizeofpatentportfolio)wereflowvalues.Infuture,ananalysisusingtheunderlyingmetricscouldbeattempted.

.Wewouldalsonotethatacompany’smarketvaluedependedonmanyfactors;andthatfromouranalysisitwasnotpossibletoconcludecausality.

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19

ANNEX

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