Edison in the Boardroom: How Leading Companies Realize Value from Their Intellectual Assets

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THE DOW CHEMICAL COMPANY: A CASE STUDY

You can't easily see it, touch it, or put a dollar value on it. But intellectual capital is a key strength that is vital to Dow's future, driving our vision to be the best at applying chemistry in ways that deliver greater value to our customers, shareholders, employees, and society. Effective management and use of intellectual capital will go a long way in helping Dow achieve that vision.¹

William S. Stavropoulos

Chairman, Board of Directors

The Dow Chemical Company

THE PRECEDING CHAPTERS have described the best practices used by today's companies in realizing value from their intellectual assets.

Thomas Alva Edison's spirit lives in the boardroom of leading companies around the world. One such company—a true model of the Edisonian path traveled throughout this book—is The Dow Chemical Company. Dow exemplifies all aspects of the Value Hierarchy described in this book—from defense of valuable inventions, to cost-saving, to profit-making, to integration, and, finally, to using intellectual capital to change the future direction of the company. To understand how, let us begin by considering the origins of this global enterprise.

THE DOW CHEMICAL COMPANY: BUILT ON INVENTIONS

The Dow Chemical Company was incorporated on May 18, 1897, by Herbert H. Dow, to begin the first commercial production of bleach. The first bleach was made in November and the first sale by The Dow Chemical Company was made in January 1898. Today, Dow is a leading science ...