The term “know-how” refers to a set of practical knowledge, technical skills, experiences and methodologies acquired through practice and often specific to a particular industry or activity. It encompasses not only technical knowledge but also the ability to effectively apply this knowledge in concrete situations to achieve high-quality results. Know-how is an asset for companies as it creates a competitive advantage that is not easily imitable or transferable without direct training or transmission.
In business, know-how can include production techniques, recipes, management methods, marketing strategies and other forms of operational knowledge that contribute to the efficiency and innovation of a company. It is often protected by confidentiality agreements or non-disclosure clauses, especially when shared in partnerships or franchises, which is a recommended approach for securing it.
Know-how is key in the field of intellectual property, even though it is not always patentable. It is an essential part of a company’s intellectual property and can be economically valued, particularly during business valuations or commercial transactions. Managing know-how is often crucial and differentiating for maintaining a company’s competitiveness and innovation.