Why do SMEs file trademarks? Insights from firms in innovative industries

Trademark filings have increased markedly over time. Although prior research has investigated the out-comes of trademark registration, including its effects on firm market valuation and productivity, little isknown about why firms file trademarks. However, to interpret the increase in trademark filings and itseconomic effects, it is important to know and understand why firms file trademarks. Because trademarksare particularly important to small and medium-sized enterprises (SMEs), this study analyzes trademark-ing motives using a survey of 600 SMEs in innovative industries. An exploratory factor analysis yieldsthree distinct motives: protection, marketing, and exchange. A cluster analysis reveals four distinct clus-ters of firms with respect to the three trademarking motives. A comparison of these clusters revealssignificant differences in several industry- and firm-level characteristics, including participation in ser-vice industries and relationships with external parties. Implications for research on SMEs, trademarks,and intellectual property management are discussed.