Managing Intellectual Property in the Defense Establishment: Opportunities and Risks

In Israel, there is a consensus on the value of all knowledge generated in the defense establishment and its contribution to the economy. But in the State Comptroller’s report of March 2014, the management of intellectual property (IP) at the Ministry of Defense was described as an ongoing fiasco, with the blame ascribed to both the Ministry of Defense and the Ministry of Finance. This essay seeks to contribute to the discourse on remedying the flaws and suggest some organizing principles in the management of IP, while considering both the needs of the defense establishment and those of the Israeli economy. The essay proposes that the IDF manage the IP under its purview as part of the organization’s knowledge management, but not engage in financial IP transactions; a specially designated company should be established in the Ministry of Defense that would be responsible for this. At present, the chances of such a move succeeding seem low, but even if it results only in an improvement of the management of technological knowledge in the defense establishment, it would constitute an achievement. Knowing that the idea of commercializing knowledge has been seriously and thoroughly examined is important in and of itself.