EPO and EUIPO: SMEs Filing IPR are More Likely to Become High-growth Firms

SMEs

As shown in a new study released on May 21, 2019, small and medium-sized enterprises (SMEs) that have filed at least one European IP are 17% more likely to become high-growth firms. 

According to the Study on High-growth Firms and IP Rights jointly published by the European Patent Office (EPO) and the European Union Intellectual Property Office (EUIPO), high-growth firms have been growing at an annual average speed of over 20% for three consecutive years, and have at least 10 employees at the beginning of their growth.

The study shows that in manufacturing, the likelihood of experiencing a subsequent growth period is 22% higher for SMEs that have filed at least one patent globally than those who haven’t; the number is even higher for those who have filed European patents, which is 34%.

The number is higher in technology industry.  Low-tech SMEs that have filed European patents are 172% more likely to experience a high growth period than those who haven’t; whereas the likelihood of high growth is 110% higher for high-tech SMEs that have filed European patents.

Similar to patent filing, SMEs that have filed European trademarks are more likely to experience high-speed growth.

For instance, in consumer non-durable industries (such as record media, cosmetics and medicine), the likelihood of experiencing a high growth period is 62% higher for SMEs that have filed European trademarks.

By contrast, in consumer durable industries (such as electronic products, furniture and jewelry), SMEs are 18% more likely to experience high growth if they have filed a European trademark.

The study also emphasizes the benefits of owning various types of IPR. SMEs with various IPRs (such as trademark, patent and industrial design) are 33% more likely to become high-growth firms than those with only one type of IPR.

The study also shows that IP bundles involving trademarks outperform other bundles without trademarks, and suggests that “trademark should be considered as a building block for effective IP bundles.”

Christian Archambeau, executive director of EUIPO, says that the study clearly shows the correlation between IPR and high-growth firms, in which trademark and other IPRs play an important role.

He also emphasizes that SMEs that have filed at least one trademark recently are 13% more likely to experience a high growth period in the future.

June 15, 2019

Source: IPR in China

Photo from: 6199pic.com