In terms of a study undertaken by the Office for Harmonization in the Internal Market (OHIM) acting through the EU Observatory on Infringements of Intellectual Property Rights, companies owning intellectual property rights (IPRs) generate some 29% higher revenue per employee, have about six times as many employees and pay wages that are up to 20% higher than firms which do not own IPRs.
the study reveals that whilst a relatively modest share of SMEs in Europe own patents, trademarks or designs, those SMEs which do own IPRs have almost 32% higher revenue per employee
Interestingly, the study reveals that whilst a relatively modest share of small and medium sized enterprises (SMEs) (companies which employ fewer than 250 people and which have an annual turnover not exceeding Eur50 million) in Europe own patents, trademarks or designs, those SMEs which do own IPRs have almost 32% higher revenue per employee.
OHIM’s said study is based on publicly available official financial data from over 2.3 million European companies which own patents, trademarks and designs at both national and EU level and clearly indicate a significantly enhanced economic performance, showing considerable benefits associated with the ownership of IPRs.
IPR-intensive industries generated almost 39% of total EU GDP, worth € 4.7 trillion
The above findings follow similar conclusions reached pursuant to a recent joint project undertaken by the European Patent Office and OHIM in connection with the extent of contribution of IPR intensive industries to economic performance and employment in the EU, which conclusions included:
- circa 35% of all employment in the EU (77 million jobs) stems directly or indirectly from IPR-intensive industries;
- 5 million Europeans were employed by IPR-intensive industries with another 20 million jobs generated in industries that supply goods and services to IPR-intensive industries;
- IPR-intensive industries generated almost 39% of total economic activity (GDP) in the EU, worth € 4.7 trillion and also accounted for most of the EU’s trade with the rest of the world;
- IPR-intensive industries pay significantly higher wages than other industries, with a wage premium of more than 40%.