A report produced by the European Patent Office and the Office for Harmonisation in the Internal Markets has found that around 39 per cent of total economic activity, worth some €4.7 trillion annually, is generated by industries that are reliant on intangible IP assets as the basis of products and services.
In total, approximately 26 per cent of all employment in the EU, amounting to some 56 million jobs, is provided directly by these industries, while a further 9 per cent of jobs stem indirectly from IP-intensive industries.
The study also found that average remuneration in IP-intensive industries is more than 40 per cent higher than in other sectors.
According to the report an efficient system of intellectual property rights is essential to foster the virtuous circle leading from investment in research to jobs via innovation and is vital to ensure that Europe’s IP system remains a useful instrument in implementing new innovation policies designed to drive new growth.
The report’s authors were prompted to do the research by calls from industry for indicators to measure the economic impact of IP rights. In addition, there have been question marks raised in public debates over the role of IP in supporting innovation and creativity, generating a requirement for facts and figures to ensure such debate is based on sound evidence.
However, the report shows that the benefit of patents and other intellectual property rights is not just unproven economic theory. For innovative companies, particularly small and medium-sized enterprises (SMEs) intangible assets have become extremely important. However, it is also the case that research centres and universities often find that patents open the door to capital and business partners.