IP-Intensive Industries A Powerhouse Of EU Economy, EPO-OHIM Study Says

The European Patent Office released a study today on the impact of intellectual property rights on the European economy, finding that some 40 percent of the total economic activity in the European Union is generated by “intellectual property rights-intensive industries.”

The study, titled, “Intellectual property rights intensive industries: contribution to economic performance and employment in the European Union,” was carried out by the EPO and the Office for Harmonization in the Internal Market (OHIM).

[Update: civil society group Knowledge Ecology International has published a critical analysis of the study, calling it “misleading.” Their analysis is here.]

Michel Barnier, EU Internal Market and Services commissioner, said in a statement, “This study shows us is that the use of intellectual property rights in the economy is ubiquitous: from high-tech industries to manufacturers of sports goods, games, toys and computer games, all are making intensive use of not just one, but often several types of IP rights,” according to an EPO press release.

“For innovative companies, intangible assets have become extremely important. Especially for SMEs, but also research centres and universities, patents often open the door to capital and business partners,” EPO President Benoit Battistelli said in the statement. “In order to remain competitive in the global economy, Europe needs to encourage even further the development and use of new technology and innovations.”

António Campinos, president of OHIM, said in the release that the study “tackles the fundamental question of the extent to which IPR-related industries matter to jobs, GDP and trade in the EU. We now have a clear answer. They do matter, they matter a lot.”

The study [pdf] covers all major IP rights, such as patents, trademarks, designs, copyrights and geographical indications, and looked at some 321 IPR-intensive industries. According to the study, “IPR-intensive industries are defined as those having an above-average use of IPR per employee.” The study says that “about half of European industries can be considered IPR-intensive,” although the study also notes that “all industries use IP rights to some extent.”

The top five patent-intensive industries in the EU, according to the study are: manufacture of power-driven hand tools, leasing of intellectual property and similar products (except copyrighted works), manufacture of basic pharmaceutical products, manufacture of other chemical products, and research and experimental development on biotechnology.

For trademarks, the top five industries are: the leasing of intellectual property and similar products (except copyrighted works), manufacture of basic pharmaceutical products, manufacture of wine from grape, research and experimental development on biotechnology, and manufacture of perfumes and toilet preparations.

The top five design-intensive industries were found to be: manufacture of watches and clocks, leasing of intellectual property and similar products (except copyrighted works), manufacture of cutlery, manufacture of ceramic household and ornamental articles, and wholesale of watches and jewellery.

For copyright, the top five industries are: book publishing, publishing of directories and mailing lists, publishing of newspapers, publishing of journals and periodicals, and other publishing activities. Ranked 6th is the publishing of computer games.

Only four industries are classified in the study as being geographical indications-intensive: operation of dairies and cheese making, distilling, rectifying and blending of spirits, manufacture of wine from grape, and manufacture of beer.

According to the study, IPR-intensive industries account for over 56 million jobs, some 26 percent of the total EU employment. Almost a quarter of those jobs (21 percent) are found in trademark-intensive industries, 12 percent in design-incentive industries, 10 percent in patent-intensive industries and “lower percentages” for copyright intensive and GI-intensive industries.

The study also found that IPR-intensive industries “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.”

A list of all IPR-intensive industries can be found in the report’s appendix.