A recent study by the European Patent Office (EPO) and the European Union Intellectual Property Office (EUIPO) has revealed a strong connection between intellectual property (IP) ownership and business performance in the EU. The research demonstrates that companies with at least one registered patent, trademark, or design enjoy higher revenues per employee and pay higher wages compared to businesses without any IP assets.

The study, which analyzed the relationship between IP and business performance, confirms that IP-empowered companies generate better financial outcomes for their employees, create more jobs, and offer higher wages. For small and medium-sized enterprises (SMEs), the correlation between IP ownership and economic benefits is especially pronounced.

IP Ownership Boosts Business Performance

European businesses that own patents, trademarks, or designs experience an average 23.8% higher income per employee and pay 22.1% more in wages compared to companies without any registered IP. Even after adjusting for factors like country of origin and industry sector, the results show that large businesses with IP ownership have an average 16% higher income per employee than those without IP. Meanwhile, SMEs with IP assets see a remarkable 44% higher income per employee compared to SMEs without any IP.

However, the study also highlights a gap: fewer than 10% of SMEs own any of the three forms of IP (patents, trademarks, or designs), while nearly 50% of large enterprises own at least one of them.

IP Ownership in Specific Industries

The study further reveals that IP ownership is particularly high in certain industries. For example, the proportion of companies with IP in the Information and Communication sector is 14.8%, in Manufacturing it’s 14.2%, in Water Supply and Waste Treatment it’s 12.0%, in Scientific and Technical Activities it’s 10.7%, and in Wholesale and Retail Trade it’s 10.6%.

Patents and European Competitiveness

One of the standout findings is that companies holding patents experience a 28.7% higher income per employee and a 43.3% increase in wages compared to those without patents.

These results align with former European Central Bank President Mario Draghi's report, The Future of Europe's Competitiveness, which advocates for increasing the commercialization of innovation to foster Europe’s competitiveness and economic growth. The study underscores that patents and other forms of IP are key assets for the success of small businesses, with EPO taking steps to help small companies and newcomers to the patent system through targeted fee reductions and rebates. The introduction of the Unified Patent in June 2023, which lowers costs and simplifies the European patent process, has proven particularly popular among SMEs.

Study Background

The study surveyed 119,000 businesses from all 27 EU member states over a period of 10 years (2013–2022). It considered patents, trademarks, and designs registered with the EPO, EUIPO, and national IP offices within the EU. By matching public IP registry data with commercial databases like ORBIS, which provides annual financial reports filed with regulators, the study was able to calculate key metrics such as "income per employee."

This research emphasizes how intellectual property can play a crucial role in enhancing business performance, and ultimately, Europe's overall economic growth and global competitiveness.

Source:http://ipr.mofcom.gov.cn/article/gjxw/gjzzh/epo/202501/1990184.html