Study quantifies patent benefits

Small and medium-sized enterprises that apply for patents or trademarks tend to grow more quickly than other companies, a study has found.

Small businesses that have filed at least one intellectual property right claim are 21 per cent more likely to grow afterwards than those that have not, according to a study carried out for the European Patent Office and the European Intellectual Property Office and published on 21 May. They are 10 per cent more likely to become high-growth firms, according to the study.

Intellectual property can help companies extract value from their ideas and secure a return on their investments, according to the study report’s authors. Companies can use IP rights to license technology and attract investors, for example, they said.