Companies with industrial property rights are more profitable

Author
Elzaburu
Date
February 27, 2025

In an increasingly competitive business environment, innovation and differentiation have become key factors for growth. A recent joint study by the European Union Intellectual Property Office (EUIPO) and the European Patent Office (EPO) confirms that companies that protect their creations through industrial property (IP) rights—such as patents, trademarks, and designs—achieve better financial results than those that do not.

The report, which analyzed the performance of more than 119,000 companies in the 27 member countries of the European Union between 2013 and 2022, sends a clear message: protecting innovation through industrial property rights leads to higher revenues and better wages for employees.

The Benefits of Registering Patents, Trademarks, and Designs: Higher Revenues and Better Wages

The study highlights the following key points:

  • Companies with industrial property rights generate 41% more revenue per employee than those that do not hold any patents, trademarks, or designs.
  • Employees at these companies earn salaries that are 22% higher on average.
  • For small and medium-sized enterprises, the difference is even more striking: SMEs with IP rights generate 44% more revenue per employee.

The report also highlights that patent holders are the most financially successful: their revenue per employee is 28.7% higher, and the wages they pay are 43.3% higher. Trademark and design holders also show positive figures, with increases of 23.3% and 29.3% in revenue per employee, respectively.

profits of companies that own PI

Compiled by the author based on the EUIPO and EPO study

SMEs with industrial property rights grow faster

Less than 10% of European SMEs hold industrial property rights, while among large companies, this percentage rises to nearly 50%.

This gap presents a major opportunity for small businesses, as data shows that those that do protect their innovations are much more productive and profitable. An effective protection strategy is key to standing out, growing, and competing on equal footing with large corporations.

In addition, small and medium-sized enterprises can benefit from the new call for proposals for the SME Fund “Ideas Powered for Business” 2025, launched by the European Union Intellectual Property Office (EUIPO). This initiative offers financial assistance that can cover up to 50% of the associated costs (up to €1,500) for the protection of trademarks, designs, patents, and plant varieties.

Which sectors have the most industrial property registrations?

The sectors that stand out for their high level of activity in industrial property are:

  • Information and Communication (14.8%)
  • Manufacturing (14.2%)
  • Water supply, waste management, and sanitation (12%)
  • Professional, scientific, and technical activities (10.7%)

These sectors are clear examples of how innovation and the protection of intangible assets are key drivers of business growth.

Why does intellectual property help businesses grow?

Industrial property rights not only protect companies' creations, but also give them a competitive edge:

  • Greater business value: IP rights are intangible assets that increase a company's value and make it easier to secure financing.
  • Access to new markets: Trademarks and patents enable companies to expand with greater security and recognition.
  • Increased trust: Consumers associate the protection of trademarks and designs with quality and innovation.
  • Ability to collaborate: Patents and other rights foster strategic alliances and technology transfer.

Industrial Property: A Strategic Investment

The EUIPO and EPO study highlights that industrial property is a key factor in the economic success of European companies. Whether they are large companies or SMEs, investing in the protection of inventions, trademarks, and designs generates more revenue and enables companies to offer higher salaries to their employees.

At Elzaburu, we understand the value that intellectual property brings to businesses. That is why our team of experts advises companies across all sectors on the protection and management of their intangible assets, helping them maximize their returns and strengthen their market position.