New research shows IPR ownership boosts revenue, wages, and competitiveness, especially for SMEs.
The European Union Intellectual Property Office (EUIPO) and the European Patent Office (EPO) have unveiled the results of their study, “Intellectual Property Rights and Firm Performance in the European Union.” The research highlights how intellectual property rights (IPRs) —including trade marks, designs and patents— drive business success, particularly for small and medium-sized enterprises (SMEs).
Key findings: Companies owning IPRs significantly outperform their peers
This analysis, based on data from 119,000 firms across all 27 EU Member States over a 10-year period (2013–2022), demonstrates that companies owning IPRs significantly perform better than those without. Firms with IPRs see a 23.8% higher revenue per employee and pay wages that are 22.1% higher on average. After correcting for relevant factors such as country of origin, size and sector of activity, the difference in revenue per employee between IPR owners and firms without IPR is even higher and amounts to 41%.The benefits are particularly striking for SMEs, which achieve a 44% increase in revenue per employee compared to their non-IPR counterparts, while large firms enjoy a 16% increase.
Trade marks and designs show significant economic impact
Companies that own EU trade marks benefit even more, with revenue per employee increasing by 40.9%. Designs also significantly enhance firm performance, delivering a 29.3% increase in revenue and a 24.8% rise in wages. Firms with registered Community designs enjoy the greatest economic advantages.
Untapped potential for SMEs to leverage IPRs for innovation and growth
The study findings reveal the importance of IPRs in sectors like information and communication (14.8%), manufacturing (14.2%), and scientific and technical activities (10.7%). However, they also highlight a critical gap: fewer than 10% of SMEs own registered IPRs, compared to nearly 50% of large firms. This disparity reflects untapped potential for smaller businesses to leverage IPRs as tools for innovation and growth.
The study’s recommendations align with those of the Draghi report and highlight the critical role of intellectual property in driving European competitiveness, wage growth, and innovation. The study also reinforces the need to support businesses in leveraging IPRs as a means to achieve sustainable growth and success.
Read the full study on EUIPO website.