EPO and OHIM (2013)
|EPO and OHIM (2013)|
|Title:||Intellectual property rights intensive industries: contribution to economic performance and employment in the European Union|
|Author(s):||The European Patent Office and the Office for Harmonization in the Internal Market|
|Citation:||EPO and OHIM (2013). Intellectual property rights intensive industries: contribution to economic performance and employment in the European Union.|
|Link(s):||Definitive , Open Access|
|Key Related Studies:|
|Linked by:||OHIM (2015)|
|About the Data|
|Data Description:||The study covers a broad range of IP rights – trade marks, patents, designs, copyright and Geographical Indications (GIs) – and considers a variety of economic indicators, in particular
Gross Domestic Product (GDP), employment, external trade and wages for 27 Member Sates (no data was available for recently-joined Croatia).
|Data Type:||Secondary data|
|Secondary Data Sources:|
|Data Collection Methods:|
|Data Analysis Methods:|
|Cross Country Study?:||Yes|
|Government or policy study?:||Yes|
|Time Period(s) of Collection:||
Innovation is one of the areas covered by the five key targets set in “Europe 2020”, the ten‑year growth strategy adopted by the European Union with a view to creating a more competitive economy with higher employment. It has never been so important to foster the “virtuous circle” leading from Research and Development (R&D) investment to jobs – via innovation, competitive advantage and economic success – as in today’s world of increasingly globalised markets and the knowledge economy. This process depends on several different factors, but an efficient system of intellectual property rights (IPR) undoubtedly ranks among the most important, given IP’s capacity to encourage creativity and innovation, in all its various forms, throughout the economy. Europe already has a long tradition in this area: European countries have played a major part in shaping a modern and balanced system of IP rights which not only guarantees innovators their due reward but also stimulates a competitive market. It is nevertheless vital to ensure that the system remains a useful instrument in implementing new innovation policies designed to achieve those goals. At the same time, there have been several calls from industry for indicators to measure the economic impact of IP rights. Moreover, in view of the question marks which, in public debate, have sometimes been raised over IP’s role in supporting innovation and creativity, it is essential that facts and figures be produced to ensure such debate is based on sound evidence. That is why the Office for Harmonization in the Internal Market (OHIM), acting through the European Observatory on Infringements of Intellectual Property Rights, and the European Patent Office (EPO) decided to join forces and carry out this study in co-operation with the European Commission, in particular DG Internal Market and Services and Eurostat. There have already been several studies on specific IP rights, industrial sectors or countries, but the OHIM-EPO study is the first to quantify the overall contribution made by IPR‑intensive industries to the EU economy, in terms of output, employment, wages and trade, taking into account the major IP rights (patents, trade marks, designs, copyrights, geographical indications). Despite the conservative approach, reflected in the rigorous methodology applied, the main results are very impressive: IPR-intensive industries generate more than a quarter of employment and more than a third of economic activity in the EU.
Main Results of the Study
IPR-intensive industries are defined as those having an above-average use of IPR per employee. The present study shows that about half of European industries can be considered IPR‑intensive. It should be emphasised, however, that all industries use IP rights to some extent. By focusing only on the IPR-intensive industries, this study arguably understates the real contribution of IP rights to the European economy. Such IPR-intensive industries are shown to have generated almost 26% of all jobs in the EU during the period 2008-2010, with almost 21% in trade mark-intensive industries, 12% in design-intensive industries, 10% in patent-intensive industries, and smaller proportions in copyright-intensive and GI-intensive industries. On average over this period, 56.5 million Europeans were employed by IPR-intensive industries, out of a total employment of approximately 218 million. In addition, another 20 million jobs were generated in industries that supply goods and services to the IPR-intensive industries. Taking indirect jobs into account, the total number of IPR‑dependent jobs rises to just under 77 million (35.1%). Over the same period, IPR-intensive industries generated almost 39% of total economic activity (GDP) in the EU, worth € 4.7 trillion. They also accounted for most of the EU’s trade with the rest of the world, with design-intensive, copyright-intensive and GI-intensive industries generating a trade surplus. IPR-intensive industries also pay significantly higher wages than other industries, with a wage premium of more than 40%. This is consistent with the fact that the value added per worker is higher in IPR-intensive industries than elsewhere in the economy.
Policy Implications as Stated By Author
The study covers a broad range of IP rights – trade marks, patents, designs, copyright and Geographical Indications (GIs) – and considers a variety of economic indicators, in particular Gross Domestic Product (GDP), employment, external trade and wages. It makes no policy recommendations, as this is not within its scope. Instead, it is designed to provide evidence that can be used by policymakers in their work, and to serve as a basis for raising awareness of Intellectual Property among Europe’s citizens. The study is intended to provide results that are comparable to those obtained for the US economy. The methodology used here is therefore closely related to that used in the pioneering study published in March 2012 by the Economics and Statistics Administration in the US Department of Commerce and the United States Patent and Trademark Office (USPTO).