IP, SMEs and high-level performance
- publish258
- Apr 12, 2021
- 2 min read
Updated: Apr 9
How does IP become a primary source of growth for SMEs? Thomas Bereuter, Yann Ménière and Ilja Rudyk at the European Patent Office report
Recent analysis from the EPO and the EU reveals that European SMEs that have taken steps to protect their IP are 21 percent more likely to experience a growth period afterwards and are 10 percent more likely to become high-growth firms, defined as companies whose turnover increases annually by 20 percent or more within a period of three years. These statistics confirm that IP activity is indeed an indicator for innovation and therefore an early signal of future growth potential. The chances of high growth or growth in general increase even further when SMEs make use of European patents, trade marks and designs. The prior use of European IP rights signals that these SMEs are not only innovative, but are also geared towards growth on an international scale. The survey also highlights persisting challenges in finding business partners across borders, as well as the complexity of conducting negotiations to set up technology transfer agreements. To a large extent, the key to successfully addressing these challenges lies in the ability of the SMEs to acquire the required skills and implement best practices. One of the major prerequisites for successful exploitation of new technologies is having a targeted IP strategy that supports the creation of customer benefits realized by products and services, or through business transactions and collaboration. In this context, IP is a business asset that can add, create or preserve value for the SME. ▪ The full version of the article, 'IP, SMEs and high-level performance', by Thomas Bereuter, Yann Ménière and Ilja Rudyk at the European Patent Office appeared in ‘Winning with IP: Managing high-growth intellectual property’, Novaro Publishing, January 2021. See details here.
▪ For further details of the report by the European Patent Office and the European Union Intellectual Property Office, 'High-growth firms and intellectual property rights: IPR profile of high-potential SMEs in Europe', May 2019, see: epo.org/high-growth.
