Why miss out on 30% revenue growth?

New research from the European Patent Office (EPO) and EUIPO shows a striking conclusion: companies within the EU with patents achieve almost 30% more turnover per employee than companies without patents. Can you conclude that 98.9% of entrepreneurs in the EU are missing an opportunity for substantial growth? No, that's not the case. In fact, it all depends on whether a patent can help you get additional sales in the first place.

Not equally relevant to every sector

Let's start with an important disclaimer. For some sectors, patents are simply less applicable. Restaurants, supermarkets, and other retail businesses - which comprise much of the study's dataset mentioned above - have little to gain from patenting. Here, innovation is often about service, experience, and logistics, not technical invention.

But if you work in an industry where patents do make a difference, this research is a clear wake-up call. Think technology, manufacturing, life sciences, and even tiny niche markets. Basically, all markets where you develop unique technical solutions. For companies in these sectors, patents are a proven way to increase sales and growth.

Why a patent can deliver

A patent is more than just a legal document. It is a strategic tool that protects and strengthens your competitive advantage. With a patent, you can:

• Keep competitors at bay: By protecting your innovation, you prevent others from copying your idea.
• Attract investment: Investors prefer companies with patents because they exude a degree of exclusivity and innovativeness.
• Create more value per employee: Innovations make processes more efficient or products more attractive, which directly contributes to higher revenue per employee.

This is especially relevant for SMEs that often have the flexibility and speed to bring innovations to market quickly. A patent offers these companies a springboard to growth and competitive advantage, even in markets where larger players operate.

Marco Coolen, photo © Bart van Overbeeke

Not just for large multinationals

This research especially emphasizes that patenting is not just something for large multinationals. SMEs in particular benefit from protecting their innovations. In an increasingly competitive world, SMEs can distinguish themselves by protecting and capitalizing on their unique ideas.

The point is not that every company must have a patent but that entrepreneurs know the value a patent can add. In industries where innovation plays a core role, as an entrepreneur, you are leaving a lot of potential untapped by ignoring this opportunity.

Now, specifically, what can you do?

Are you operating in a sector where technical innovations are important? If so, seriously consider protecting your innovations with a patent. Take the time to evaluate the value of your innovations and how you can use them strategically. Look closely at the components within your product that make the whole thing unique. Sometimes, it makes more sense to apply for a patent for a module than for the entire product. Consider advice from a patent attorney to explore your options and make an informed choice.

Bottom line, you should realize anyway that the numbers speak for themselves: companies with patents get more out of their employees, grow faster, and perform better. It's an opportunity that SMEs shouldn't miss. So, if you're in a relevant industry, now is the time to discover what patenting can do for your business. It could just be the key to that extra 30% revenue.