This paper reviews the role played by a company’s internal R&D in stimulating operational performance of a manufacturing company, which is moderated by intellectual property rights (IPR), particularly patents, in Malaysia.The constructs of this paper are based on a comprehensive review of recent literature on internal R&D and operational performance moderated by patents. A
detailed discussion revealed implications on policy making, especially for government or related authorities in promoting and enforcing IPR. IPR policy especially regarding patents should be part of a company’s business strategy. Implementing IPR will safeguard new invention, innovation, or processes in the long run. Furthermore, the company may gain benefits in creating new business opportunity during various patenting stages.The environment and conditions for R&D activity have changed significantly in the last decade.Thus, effective practice of internal R&D gives advantage to the company from three different aspects; namely, the ability to develop and grow critical human resource, dynamic involvement in the corporate R&D programme, and the ability to connect information. Therefore, the relationship between internal R&D and operational
performance moderated by IPR would encourage the betterment of the company in the future.In summary, this paper highlights the importance of internal R&D toward operational performance of
a company moderated by IPR, as well as reviews the latest literature from the perspectives of
sustainability and innovation
