The economy and IP
Intellectual property rights (IPR) act as a fundamental catalyst for innovation, serving as a key driver of long-term economic performance and global competitiveness.
To better understand these complex dynamics, the Observatory conducts comprehensive research into how strategic IP usage shapes economic outcomes across various sectors, industries and individual firms. This ongoing analysis provides essential insights into the multidimensional contributions of intellectual property throughout Europe and the broader international landscape.
Dive in
IP and innovation in European sectors
This joint study by the EPO and EUIPO analyses the contribution of IPR-intensive sectors to the EU economy.
Intellectual property rights and firm performance in the European Union
This joint study by the EPO and EUIPO provides an updated analysis of the ownership and use of IP rights by SMEs and large firms in the EU.
Unlocking innovation potential in Latin America and the Caribbean
This joint study by the EPO and CEPAL assesses the economic impact of manufacturing industries and their exposure to innovation and IP at the local, regional and global level.
Why IPR matter for the European economy
Over 47.9%
of total EU GDP was generated by intellectual property rights-intensive industries, equivalent to €7.7 trillion.
Nearly 24%
higher revenues per employee are achieved on average by European companies with patents, trade marks or designs compared to companies without IPRs.
Up to 40.9%
higher wages are paid in IPR-intensive industries in EU member states.
Q&A – Insights from the EPO
- What is the role of IPR-intensive industries for Europe’s internal market?
IPR-intensive industries make an important contribution to the functioning of the EU's internal market. While countries such as France, Germany, Italy and the Netherlands lead in terms of the creation of new IPRs, other countries including the Czech Republic, Latvia, Poland, Romania and Slovakia also strongly benefit from the division of labour within IPR-intensive industries.
In total, over 7.2 million IPR-related jobs in EU member states are created by companies from other member states, with the share of such jobs in IPR-intensive industries exceeding 25% in some countries.
- And what role do IPR-intensive industries play in Latin America and the Caribbean?
IPR-intensive industries show a disproportionate value added and wage premiums in LAC manufacturing. During the 2016–2020 period, IPR-intensive manufacturing industries employed roughly 1.68 million workers (12.4% of formal manufacturing employment) and generated 13.0% of total value added (over $68.2 billion USD). This productivity advantage translates directly to the workforce: workers in IPR-intensive industries earned a 32.1% wage premium over their peers in non-IPR sectors, an advantage that surges to 56.2% in purely patent-intensive industries.
- 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.
- Do IPR-intensive industries attract more private investment?
Yes, startups operating in IPR-intensive industries attract the vast majority of private equity and venture capital investment in the EU, highlighting the central role of IP in driving innovation-led growth.
Between 2021 and 2023, over 88% of total private equity and venture capital funding in the EU, equivalent to EUR 70.7 billion, was invested in startups active in IPR-intensive industries. This concentration of investment underscores how strongly investors favour sectors where intellectual property is critical to competitiveness, scalability and long-term value creation.
Publications
Dive into a collection of economic studies focused on the economy and IPR. Here, you'll find valuable research on the impact of intellectual property and innovation.
IPR-intensive industries and economic performance in the European Union
Produced jointly by the EPO and the European Union Intellectual Property Office (EUIPO), these studies analyse the contribution made by IPR-intensive sectors to the EU economy. They cover all major IP rights: patents, trade marks, designs, copyrights, geographical indications and plant varieties. The studies identify which industries make above-average use of those IP rights and quantify the contribution of these IPR-intensive industries to major macro-economic variables (employment, wages, gross domestic product and trade) at the EU level.
2026 study (analysing 2021-2023)
2022 study (analysing 2017-2019)
2019 study (analysing 2014-2016)
2016 study (analysing 2011-2013)
2013 study (analysing 2008-2010)
Intellectual property rights and firm performance in the European Union
This study series is produced jointly by the EPO and the European Union Intellectual Property Office (EUIPO) to provide estimates of the ownership and use of intellectual property rights (IPRs) by small and medium-sized enterprises (SMEs) and large firms in the European Union. It also analyses the differences in performance between firms that register IPRs and those that don't.
2025 study (analysing 2013-2022)
2021 study (analysing 2007-2019)
2019 study (analysing 2005-2010)
Harnessing intellectual property for development: Opportunities and challenges in Latin America and the Caribbean
This joint study by the EPO and CEPAL assesses the economic impact of manufacturing industries and their exposure to innovation and IP at the local, regional and global level.
Events
Explore the events we are hosting and watch the recaps via the recordings.
