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:

China Tackles Bad-faith Trademark Registrations

The China National Intellectual Property Administration has published Draft Regulations in an effort to tackle bad-faith trademark applications. In

Read more...

Case highlights difficulty in establishing use-based rights in Denmark under new Trademark Act

The new Trademark Act came into force in Denmark at the start of 2019. Amendments to the act include

Read more...

Beijing High Court rejects Thermos’ appeal in invalidation proceedings

Over a decade ago, a Chinese company filed for the mark TILIR THERMO VOGUE in Class 21 for use

Read more...

Mobile Sliding Menu