Implementation of Intellectual Property Right to Strengthen Small and Medium-Sized Enterprise Business Capacity in Global Competition

Abstract

This study aims to analyze the role of MSMEs in the Indonesian economy and the implementation of Intellectual Property Rights (IPR) in protecting Micro, Small and Medium Enterprises (MSMEs). Qualitative analysis is done by interpreting the data collected from library studies with the aim of solving research problems. The result showed that the protection of IPR in MSMEs can increase its business capacity and be able to compete in global competition, because goods and services have exclusive rights and economic rights. With the protection of IPR, stakeholders will strengthen MSMEs and participate in developing the MSME capacity. The banks can provide credit loans with collateral for IPR assets owned by MSMEs.

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“…MSMEs are the foundation of the national economy in developing countries, where their contribution is up to 60% of the national income (GDP) compared to large industries in which they contribute 40% to the GDP (Fikri, 2010;Suparji, 2020). As Suparji (2020) states in his research, the global competitiveness of MSMEs and their contribution to national economic growth could be further developed.…”

“…MSMEs are the foundation of the national economy in developing countries, where their contribution is up to 60% of the national income (GDP) compared to large industries in which they contribute 40% to the GDP (Fikri, 2010;Suparji, 2020). As Suparji (2020) states in his research, the global competitiveness of MSMEs and their contribution to national economic growth could be further developed. Their contribution has been more than 60% of the GDP, absorbing up to 97% of the workforce and 14% of total national exports, while the number of MSMEs has reached more than fifty-seven million businesses; hence, there is a need to enhance their capacity and capability.…”

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“…MSMEs are the foundation of economic growth and as a supporter of the national economy of developing countries that are able to absorb up to 99% of the workforce, and are able to complement large industrial products in local and national markets. The development of MSMEs in Indonesia based on statistical data in 2013 states that the number of MSMEs is 57,895,721 with a workforce absorption of 114,144,082, the market capacity of MSMEs in regional and international markets is still relatively small, this can be seen from the contribution to the export value of only 9.29 %, so it is necessary to increase the capacity of MSMEs (Suparji, 2020).…”

“…Wijayanto in Suparji said that MSMEs are institutions that can survive in the midst of a crisis. This can be seen from the monetary crisis in 1997-1998 which could absorb 85-107 million workers until 2012, from a total of 56,539,560 companies, there were 99.99% of companies in the MSME category, as well as during the COVID-19 pandemic at the beginning of 2019 until now (Suparji, 2020).…”