A study by the European Union Intellectual Property Office (EUIPO) and the European Patent Office (EPO) shows that intellectual property rights (IPRs) make a big difference to the growth and performance of companies in the European Union. The research covers the period 2013–2022 and analysed the activity of more than 119,000 firms across the 27 member states.
How the study was done
The study assessed how IPRs such as patents, trademarks and industrial designs influence companies' economic performance. The researchers linked IPR data, taken from European and national databases, to financial information from the ORBIS database, which collects companies' financial reports. The sample included firms from a range of industries, so it gives a broad picture of the European economy.
Main findings
The study found significant differences between firms that hold IPRs and those that don't:
- Employment: companies with IPRs reported more employees than those without.
- Higher revenue per employee: companies with IPRs reported 24% higher revenue per employee than those without such rights. Once industry, company size and location are taken into account, the advantage rises to 41%, with an even greater impact for small and medium-sized enterprises (SMEs).
- Higher wages: employees at companies that use IPRs earn 22% more than those at firms without IPRs.
- Firm size: around 50% of large European companies hold IPRs, compared with fewer than 10% of SMEs. Even so, the economic benefits are greater for SMEs, so many of them are missing an opportunity here.
Why IPRs matter for SMEs
SMEs are the backbone of the European economy and create a large share of its jobs and innovation. Even so, only a small percentage of them use IPRs to protect their intellectual assets. According to the study, SMEs that hold IPRs have:
- greater competitiveness in international markets;
- easier access to funding and investment;
- a better chance of attracting strategic partnerships.
By protecting its patents, trademarks or industrial designs, an SME reduces the risk of its products being imitated and can afford to keep innovating.
Recommendations for companies
For an SME, an intellectual property strategy can make the difference between growth and stagnation. The study proposes a few measures:
- Better awareness: authorities and organisations in the field should explain the benefits of IPRs to SMEs, with clear information on how they can protect and make the most of their innovations.
- Lower costs: a simpler process for obtaining IPRs and lower costs would make these tools more accessible to SMEs.
- Financial and logistical support: grants and public programmes can help SMEs invest in protecting their intellectual property.
The conclusion drawn by EUIPO and the EPO is that, alongside their legal role, IPRs are also levers of economic growth and competitiveness. Policies that encourage the use of IPRs can foster a more innovative and sustainable European economy, and SMEs have the most to gain.
You can read about EU support for SMEs that want to register their intellectual property rights in our article on the SME Fund.
Frequently asked questions
How much more do firms that hold intellectual property rights earn?
According to the EUIPO and EPO study, firms with intellectual property rights (patents, trademarks, industrial designs) reported 24% higher revenue per employee than firms without such rights. When industry, company size and location are taken into account, the advantage rises to 41%, and the effect is even stronger for SMEs. Employees of these firms earn 22% higher wages.
How many EU SMEs hold intellectual property rights?
The EUIPO and EPO study, which covered more than 119,000 firms across the 27 member states, shows that fewer than 10% of SMEs hold intellectual property rights, compared with around 50% of large European companies. Yet the economic benefits are greater precisely for SMEs, so many small and medium-sized firms are leaving a source of competitive advantage untapped.