Companies with IP generate at least 23.8% more revenue according to latest EU report

In Insights

5 February, 2025

The report ‘The Intellectual Property Rights and Firm Performance in the European Union’ was published last month and analyses intellectual property records by matching firms with their registered patents, trademarks, and designs from multiple authorities, including the European Patent Office (EPO), European Union Intellectual Property Office (EUIPO), and various national and regional IP offices within the EU.

The study shows that companies holding Intellectual Property Rights (IPRs) significantly outperform those not registering such rights.

Companies with IPRs generate approximately 23.8% more revenue per employee than their non-IPR counterparts. This advantage becomes even more pronounced when adjusting for factors such as industry, company size, and location, leading to an impressive 41% increase in revenue.

While only around 10% of small and medium-sized enterprises (SMEs) register IPRs, those that do report 44% higher revenue per employee than those without IPRs. This suggests that even a small investment in IPR can yield substantial returns, particularly for smaller firms.

In addition, businesses owning IPRs tend to pay their employees 22% higher wages than those without such protections. This not only boosts employee morale but also helps attract top talent, creating a more robust workforce.

The data clearly illustrates that companies investing in IPR reap significant rewards, making a strong case for firms to consider the strategic advantages of securing their intellectual assets. This is particularly true for small and medium-sized enterprises, where the levels of IPR remain low but reap the largest rewards in terms of revenue per employee.

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