Startups and SMEs
Startups and SMEs are key drivers of innovation and economic growth in Europe. Intellectual property (IP) rights such as patents play a crucial role in securing funding and ensuring business success. The Observatory offers resources to help startups and SMEs navigate how IP can boost investor confidence and fuel growth.
Dive in
Startup guide
Check out the EPO's Startup guide for valuable insights on how to protect your innovations and leverage intellectual property to grow your business.
EPO gathers feedback from SMEs
The EPO is listening to deep tech innovators to help more startups benefit from the patent system.
Patents, trade marks and startup finance – 2023 study with the EUIPO
Startups with European IP rights, European patents and trade marks are up to ten times more likely to attract investments.
Find startups and investors in your field
The Deep Tech Finder is your gateway to exploring Europe's innovation landscape. Designed for investors, researchers, startups and universities, this free tool connects you with key players in cutting-edge technology fields.
Why IP matters for startups and SMEs
Up to ten times
greater funding odds at seed stage for companies with both patents and trade marks
Over 110%
increase in likelihood of high growth for European SMEs after filing a European patent
More than double
the chances of a successful exit for startups that file patent applications
Q&A – Insights from the EPO
- How do firms with IPRs compare to those without?
IPR-owning firms are typically larger, have higher revenue per employee and pay higher wages. They employ around 118% more people, generate 24% more revenue per worker and pay 22% more in wages than non-IPR owners.
There are clear benefits to IPR ownership. IPR firms average nine employees, versus 4.2 for non-IPR firms, a 118% increase in workforce size. These firms also show a 24% higher revenue per employee, 182.27 (thousand EUR/year) compared to 147.23 for non-owners. Further, IPR owners pay 22% more in wages per employee: 31.04 versus 25.43 (thousand EUR/year). This data suggests a strong correlation between IPRs and better economic performance, including more jobs, higher productivity and better wages for businesses of all sizes.
- Can patents help growth for smaller companies?
Yes, prior patent filings are a good indicator of growth in smaller firms in both high-tech and low-tech industries.
In high-tech industries, the likelihood of high growth is 110% higher for SMEs that have filed one or more European patents. The predictive power of European patents is particularly strong in low-tech industries (+172%), where a patent filing can be a relatively rare event. Patents protect intellectual assets but can help to signal investment, serve as collateral, be used for licensing and achieve partnerships with other organisations.
- Startups in which industries are more likely to use patents?
Biotechnology, science, healthcare and manufacturing are the most patent-intensive sectors. These industries often rely on patents to protect innovations and maintain competitiveness.
- Do IP rights increase funding chances?
Yes, startups with patents or trade marks are significantly more likely to secure funding, especially in the early stages. Combining both types of IP further increases the odds.
Startups with patents and trade marks are much more likely to secure funding. At the seed stage, trade marks increase funding odds by 4.3x, patents by 6.4x, and combining both has the greatest impact up to 10x. Investors see IP rights as a sign of innovation and value.
- Is there an advantage to European IP rights?
Yes, European patents and trade marks significantly boost funding odds, signalling ambition and international potential.
European IP rights provide an edge in securing funding, especially at early stages. Startups with European-level patents or trade marks are seen as more ambitious and better positioned for international expansion.
- Where can I easily find other startups with patent applications?
Use our Deep Tech Finder, a free tool with patent and funding information on European startups.
The Deep Tech Finder is your gateway to exploring Europe's innovation landscape. Designed for investors, researchers, startups and universities, this free tool connects you with key players in cutting-edge technology fields.
Publications
Dive into a collection of economic studies and insightful reports focused on startups and SMEs. Here, you'll find valuable research on the impact of intellectual property and innovation on business growth and funding opportunities.
See below for a comprehensive selection of economic studies on startups and SMEs
This joint study by the EPO and the EUIPO focuses on how innovative startups obtain financing to develop their ideas into new products for the marketplace.
This joint study by the EPO and EUIPO provides an updated analysis of the ownership and use of intellectual property rights (IPRs) by SMEs and large firms in the EU.
This joint study by the EPO and EUIPO analyses the contribution of IPR-intensive sectors to the EU economy.
Innovation case studies
Explore a series of innovation case studies showcasing how startups and SMEs have successfully leveraged intellectual property. These real-world examples highlight the role of IP in driving growth, securing funding and fostering innovation.
See below for a selection of innovation case studies featuring startups and SMEs
A company transforming from a small startup to a global leader in aerosol technology for drug delivery in acute care
A medical technology SME using patents and patent information strategically to safeguard future product lines, ensure freedom to operate and find inspiration for new technical developments.
Deep Tech Finder
Find startups and investors in your field
The Deep Tech Finder is your gateway to exploring Europe's innovation landscape. Designed for investors, researchers, startups and universities, this free tool connects you with key players in cutting-edge technology fields.
Podcasts
How do patents and trade marks help fund startups?
How are European startups using patents and trade marks to raise finance? The high failure rates of promising startups are often linked to their cash-flow problems, so this is a topic of critical importance for Europe's economy.
Are patents cost-effective for small businesses?
Filing fees, attorney costs, translations... How do you deal best with the expense when applying for a patent? Find out what discounts might be available to you.
How can patent knowledge be used to innovate?
As an inventor turned entrepreneur, startup or university researcher, how do you keep abreast of the latest technology developments? Find out how you can leverage free patent databases to succeed in your line of business.
Events
Upcoming events for startups and SMEs
Discover upcoming events where the European Patent Office in partnership with national patent offices of EPO member states will engage with startups and SMEs. These events offer valuable opportunities to connect, learn and explore how intellectual property can drive your business forward. Stay informed and join us:
External events
12-14 May, PODIM in Maribor, Slovenia with the Slovenian Intellectual Property Office
15-16 May, Deep Tech Atelier in Riga, Latvia with the Latvian Patent Office
21-23 May, GITEX Europe in Berlin, Germany with the German Patent and Trade Mark Office (DPMA)
11-14 June, Viva Technology in Paris, France with the French Patent and Trademark Office (INPI)
25-26 June, Research to business in Bologna, Italy with the Italian Patent Office
Past events organised by the Observatory
Explore the events we hosted and watch video recaps.
