What is intellectual property? Why is it called "intellectual" property? Why is intellectual property such an important issue for entrepreneurial firms?

What will be an ideal response?

Intellectual property is any product of human intellect that is intangible but has value in the marketplace. It is called "intellectual" property because it is the product of human imagination, creativity, and inventiveness. Traditionally, businesses have thought of their physical assets, such as land, buildings, and equipment, as their most important assets. Increasingly, however, a firm's intellectual assets, which include inventions, trademarks, brands, and methods of doing business, are their most valuable assets. Intellectual property is particularly important to entrepreneurial firms, because many firms begin with an idea (based on an invention or a new method for doing business), and their idea represents their most valuable assets (and source of competitive advantage). It is nearly impossible for an entrepreneurial firm to beat an established firm based on physical assets. Entrepreneurial firms, however, can "outthink" established firms, which involves intellectual assets.