First Mover Advantage in IP: Innovate Fast or Patent Smart?

By: Amer Al-Nasser/ AGIP Nordic

In the race for innovation, there’s a classic strategic question: is it better to be the first mover in the market or to be the one with the smartest patent strategy? In other words, should you innovate fast and get your product out before anyone else, or patent smart by securing intellectual property rights to protect your idea (even if that means you’re not first to market)? The answer isn’t one-size-fits-all. 

The Desire To Be First
Being first to market with a new product or technology can offer powerful advantages. According to many business strategists, a strong first-mover advantage can build brand recognition, customer loyalty, and a significant market share before competitors arrive. An example of this can be Nokia and MySpace. 
However, the first mover approach has risks. The Dot-Com Era provided a cautionary tale: many first-to-market internet startups collapsed while savvier followers succeeded. Being first means you often have to educate the market and make initial mistakes that others learn from. 
Being first can offer the advantage of shaping the market, but coming second can be just as powerful, allowing companies to learn from others’ missteps. Just look at how Facebook surged ahead while early players like MySpace faded away. Defining a market puts you in a strong position, but never assume competitors won’t catch up.

“The true challenge is not getting to the top but staying there.” 
- Pat Riley, legendary NBA coach
A fast innovator might also forgo the chance to patent their tech in the rush to launch, which can be costly. If a competitor can quickly imitate your product or patent something you overlooked, your head start might evaporate. This scenario mirrors the old business saying “the second mouse gets the cheese.” In some cases, a clever second mover can improve on the original idea or simply avoid the pitfalls, then sprint ahead.

The Power of Patents
That’s where patenting smart comes in. A strong patent portfolio can act as a shield and a sword: it protects your innovation from copycats and gives you leverage (through licensing or litigation) over competitors. In industries like pharmaceuticals, being first without a patent would be almost meaningless. The moment a new drug is out, generic manufacturers could copy it, wiping out the inventor’s profits. Here, patents are the advantage, often more so than head start. 

Yet, focusing on patents has downsides. Obtaining patents takes time and resources, and not every invention is patentable or broad enough to matter. If a company spends too long in the patent process, it might miss the market window, a competitor could launch a similar product and capture customers while you’re tied up with filings. Moreover, patents don’t guarantee market success. You might win the IP battle but lose the commercial war if your product or execution is inferior. 

Balancing Speed and IP Savvy
The best strategy often combines elements of both. Smart companies try to move fast and secure key patents in parallel. This means getting to market quickly to build momentum, while quietly filing patent applications to protect the core of the innovation. 

In conclusion, innovation strategy isn’t an either/or proposition. First mover advantage and intellectual property protection are both valuable tools, the key is knowing when and how to emphasize each. At this critical stage, partnering with a leading IP firm can make all the difference in navigating global markets and securing long-term success. At AGIP, the largest intellectual property firm in the MENA region, we specialize in helping innovators protect and maximize the value of their ideas worldwide.

To learn more, visit www.agip.com.