EU Study shows that IPR industries provide “virtuous circle” in creation and maintenance of successful economy

European IPR-intensive industries generate more than a quarter of employment and more than a third of economic activity according to an Office for Harmonization in the Internal Market (OHIM) and the European Patent Office (EPO) study. The copyright sector alone contributes € 0.5 trillion, or 4.2%, to the European GDP.

The main findings were as follows:
• About 50% of EU industries are IPR intensive
• IPR-intensive industries account directly for 26% of all jobs in the EU – around 56 million direct jobs. With the addition of 20 million indirect jobs, 1 in 3 of all EU jobs rely on IPR intensive industries.
• These industries generated almost 39% of total economic activity (GDP) in the EU, worth €4.7 trillion. Of these copy-right intensive industries contribute 4.2% worth nearly 510,000 million €.
• IPR-intensive industries pay higher remuneration than non-IPR intensive industries, with a wage premium of more than 40%. The average weekly remuneration in IPR-intensive industries is €715, compared with €507 in non-IPR intensive industries
• IPR-intensive industries account for 90% of the EU’s trade with the rest of the world
This was the first EU-wide study on the overall contribution made by intellectual property intensive industries to the EU economy, in terms of Gross Domestic Product (GDP), employment, wages and trade. In the introduction to the Executive Summary, the Presidents of OHIM and EPO - António Campinos and Benoît Battistelli - acknowledge the role that European countries have played in shaping a modern and balanced system of IP rights, which not only guarantees innovators their due reward but also stimulates a competitive market. Campinos and Battistelli stress the need to foster the “virtuous circle” leading from R&D investment to jobs - via innovation, competitive advantage and economic success especially in the knoweldge economy and state that an efficient system of intellectual property rights (IPR) undoubtedly ranks among the most important factors in ensuring this, given IP’s capacity to encourage creativity and innovation, in all its various forms, throughout the economy. They note that there have been several calls from industry for indicators to measure the economic impact of IP rights and one of the purposes of this study was to produce the facts and figures to ensure such debate is based on sound evidence.
Click here for the Executive Summary and here for the full report.