Sectors with lots of intellectual property important to the economy

Patents, trademark rights, design rights, copyrights, plant breeders' rights and protected designations of origin: industries making above-average use of these six forms of intellectual property accounted for almost half (48.8%) of the Netherlands' gross national product (GDP) in the period 2021-2023. This is according to the new report "IP and innovation in European sectors," published by the European Patent Office (EPO) and the European Union Intellectual Property Office (EUIPO).

Innovation is crucial to our prosperity

According to the report, industries that make intensive use of intellectual property (IP) are the backbone of the economy not only in the Netherlands, but throughout the European Union (EU) . The report shows that these industries were responsible for as much as 47.9% of total GDP in the EU in the period 2021-2023. With this, the economic impact of innovation remains undiminished. The impact on the labor market is also significant: IP-intensive industries employed over 65 million people. That is 30.6% of total employment in the EU. Working in these industries also pays off; workers there earn on average almost 41% more than their counterparts in non-IE-intensive industries. In addition, these sectors play a dominant role on the world stage: they represent over 78% of European exports and collectively generated a trade surplus of €108 billion. This makes them essential to European competitiveness.

The Netherlands creates a lot of intellectual property

The Netherlands is among the European vanguard when it comes to the economic impact of industries that make intensive use of these rights. These industries accounted for 48.8% of Dutch GDP, higher than the EU average of 47.9%. This strong position is partly due to companies using plant breeders' rights, but also to other Dutch companies in global value chains. Value added from exports, at 27.8% of GDP, is significantly higher than the European average (23.1%). This shows that Dutch IP-intensive industries are strongly focused on international markets.

The report further shows a clear division of labor within Europe, with the Netherlands primarily acting as a source of IP rights. In absolute numbers, the Netherlands ranks third in the EU in terms of patent applications, after Germany and France. Because production often takes place elsewhere, Dutch companies act as a job engine for the rest of the union: they created over 441,000 jobs in other member states. Conversely, 21.2% of the jobs in Dutch IP-intensive sectors can be attributed to foreign companies.

IE-intensive sectors attractive to investors

For innovative startups, access to financing is vital. Banks are often reluctant to lend for risky new technologies, making venture capital essential. The report shows that between 2021 and 2023, as much as 88% of all venture capital and private equity in the EU flowed to companies in IP-intensive sectors. This amounts to a total of €70.7 billion. Investors clearly see patents and trademark rights as an indication of growth potential and business opportunities.

To know more,

Read more details about the study on the website of the European Patent Office or the website of the European Union Intellectual Property Office. Or download the report 'IP and innovation in European sectors - EUIPO'