EPO and EUIPO study finds link between IPR and SME growth

In Insights

9 July, 2019

A recent study by EPO and EUIPO explores the relationship between prior IPR activities of SMEs and the likelihood of experiencing a high-growth period.

The purpose of the research was to investigate the following questions:

  • Can the filing of IP rights be used as a reliable predictor of the likelihood that an SME will experience high growth?
  • If so, what are the types of IPR strategies that perform best as a signal of SMEs’ growth potential?

Interestingly, the study found a correlation between prior IPR activity of SMEs and the likelihood of experiencing high-growth periods. However, as noted in the study: “this correlation should not be interpreted as a direct causal effect: the mere filing of an IP right is not sufficient to trigger growth, but it can signal a firm’s stronger ability to sustain growth through the creation, protection and exploitation of intellectual assets”.

Even more interesting, the study has found a greater likelihood of achieving high-growth with prior use of multiple IPR activities, as illustrated in the figure below (extracted from the study):

 

The report highlights five main findings from the study that will be of particular interest to SMEs:

  1. SMEs with prior IPR activities are more likely to grow than other SMEs
  2. The likelihood of becoming a high-growth firm (HGF) is even higher for SMEs that have filed a European IPR
  3. Prior patent filings perform best as HGF predictors in high-tech and low-tech industries
  4. Prior trade mark filings perform best as HGF predictors in consumer-oriented industries
  5. SMEs that use bundles of trade marks, patents and designs instead of a single category of IPR are even more likely to achieve high growth.

The findings highlight a correlation between intellectual property rights activities of SMEs and not only their future growth ability, but also their longevity in increasingly crowded and competitive market spaces.

You may also be interested in:

Draft regulations cement China’s emerging position on tackling infringement

Draft regulations from the National Development and Reform Commission (NDRC) formalise China’s changing stance on asserting punitive damages for

Read more...

Protection services available for top-level adult domains

ICM Registry, operator of sponsored top-level domains (sTLDs) such as .XXX, .PORN, .ADULT and .SEX, has launched a blocking

Read more...

Brexit may stall Germany’s ratification of the UPCA

The German Justice Ministry expressed earlier this month that the government will not ratify the Unified Patent Court Agreement

Read more...

Mobile Sliding Menu