Intellectual property improves wages and creates 81 million jobs in the European Union

Although it may be an unknown aspect for the general public, the intellectual property rights (IPR) are a powerful industry. Specifically, they generate more than 81 million jobs in the EUdirectly or indirectly.

This is equivalent to almost four out of every 10 jobs in the European Union (39.4%). In addition, the contribution of these sectors to the EU’s GDP amounts to 47.1% of total gross domestic productfor a value of 6.4 billion euros.

These are some of the main conclusions of the 2022 edition of the report on IPR-intensive sectors and economic performance in the European Union, a major Europe-wide study published today by the European Union Intellectual Property Office (EUIPO) and the European Patent Office (EPO).

The report also reveals that more than 80% of EU imports and exports are generated by IPR-intensive sectorsproducing a trade surplus of €224 billion and helping to maintain a positive balance in trade between the EU and the rest of the world.

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Christian Archambeau, Executive Director of the EUIPO, has pointed out that: “Europe and innovation go hand in hand, and companies that take advantage of their intellectual property (IP) are seeing clear benefits while contributing to the functioning of the EU internal market. The study shows that by strengthening the IP ecosystem in Europe, we are strengthening the economy. IPR-intensive sectors are an engine for jobs and trade, and can help Europe on its way to economic recovery and ecological transition.”

Data from the 2022 edition shows that the contribution of IPR-intensive sectors to the EU economy is at its highest level since the 2008-2010 period in all aspects: job creation, GDP and product exports and services. Demonstrating that IPR-intensive sectors are increasingly important to the EU economy.

These sectors employ more than 61 million people in the EU, and indirectly create another 20 million jobs, due to the need for products and services generated by the industry. In addition, they pay significantly higher wages than others, with a 41% differential.

Climate change, mitigation technologies and green marks

The study also shows that both the sectors that develop climate change mitigation technologies (CCMT) and those related to green brands gain weight2. Many of them related to energy and transportation. The patent-intensive sectors of the TMCC or green brands represent the 14% of GDP in the EU, the 9.3% of employment and one much of the EU’s foreign trade activity.

In total, around one in 10 European patent applications, coming from the EU, was related to TMCC aimed at reducing or preventing the emission of greenhouse gases. Green marks filed by companies established in the EU represent a similar proportion of the total applications made in 2021.

IPR-intensive sectors

IPR-intensive sectors are an essential pillar of the EU’s single market, representing more than 75% of trade within the EU.

They are also an important driver of cross-border job creation, as nearly 7 million jobs in EU countries they are created by companies from other Member States, with a share of jobs in these sectors exceeding 30% in some countries.

While countries such as Germany, France, Italy or the Netherlands lead the creation of new IP rights, others such as the Czech Republic, Hungary, Poland or Estonia also benefit greatly from the division of labor in IPR-intensive sectors. .

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