IPR-intensive Industries and Economic Performance in the European Union Industry-level Analysis Report, Fourth Edition

Background

This joint study by the European Union Intellectual Property Office and the European Patent Office provides a broad, improved assessment of how industries that make intensive use of intellectual property rights (IPR) contribute to EU economies. It updates and extends the findings of a previous study released in 2019.

The study covers a broad range of IP rights – trade marks, patents, designs, copyright, geographical indications (GIs) and plant variety rights (PVRs) – and/ considers multiple economic indicators, with a focus on gross domestic product (GDP), employment, wages and external trade. Instead of making policy recommendations, the study provides facts and figures that can be used by policymakers to raise awareness of intellectual property as an economic driver. 

Key findings

We define IPR-intensive industries as having an above-average use of IPR per employee. Most industries use IP rights to some extent, but this study focuses on areas of the European economy where IP rights make a major contribution.

Key figures for IPR-intensive industries by type of IP right

1: Since the same industry may make intensive use of more than one IP right, the sum of the figures for the individual IPR exceeds the figure for all IPR-intensive industries.

Economic impact of IPR-intensive industries 

The positive impact of IPR-intensive industries on key economic indicators is growing steadily (see table below). Direct employment in the 357 IPR-intensive industries reached 61.5 million in 2017-2019.

2: The 2014-2016 figures have been re-calculated to take into account methodological changes between the two studies

GDP

During 2017-2019, IPR-intensive industries generated 47% of total economic activity (GDP) in the EU, with a value of €6.4 trillion. Trade mark-intensive industries alone were responsible for 39% of EU GDP (€5.2 trillion).

Employment

IPR-intensive industries directly generated 30% of all jobs in the EU during the period 2017-2019. On average, 61.5 million Europeans were directly employed in IPR-intensive industries over this period, out of a total of around 207 million persons employed. An extra 20 million jobs were indirectly generated in industries that supply goods and services to IPR-intensive industries. Taking indirect jobs into account, the total number of IPR‑dependent jobs rose to 82 million (39%).

Wage premium

IPR-intensive industries also pay significantly higher wages than other industries, with a premium of 41%. The value added per worker is also higher in IPR-intensive industries than elsewhere in the economy. The wage premium is especially high in patent-intensive industries, where it totals 65% (€985 per week).

Trade 

IPR-intensive industries form the backbone of the EU single market, with 76% of trade flows between EU countries. They also account for the bulk of the EU’s external trade and generated a trade surplus of €224 billion for the EU in the period 2017-2019. Patent-intensive industries alone generated a sur plus of €218 billion.

Download the full report at

www.epo.org/ipr-intensive-industries

www.euipo.europa.eu/ipcontribution

Source: EPO & EUIPO

Editor: IPR Daily-Ann