Small and Medium Enterprises (SMEs) play an important role in the country’s overall production network. Developed countries have historically succeeded because they focused on innovation and SME’s. Today, over 65% of employment and 50% of the Gross Domestic Product is contributed to SME’s in the European Economy.
SMEs have the potential to contribute systematically to the economy and offer a stronger foundation for the growth of new industries as well as strengthening the existing ones.
Why are Intellectual Property Rights Important for SME’s?
IP is a key consideration in everyday business decisions. While America has been traditionally investing in IP’s, developing countries like China are following suit. The need to invest in IP is important as it helps drive in innovation and business growth.
Innovation and creativity brings forth new products and services – the catalysts for bringing in investment. For most businesses, investing in IP ensures that their legal right are protected and that they can sue in case of IP infringement.
SME’s can rely on IP to boost productivity, earn licensing fees and even get royalty. Patents help create monopoly and offers protection to the business, stopping others from commercially exploiting their innovation.
IP helps SMEs to obtain higher return on investments and efficiently manage their assets.
Measuring for Encouraging a Major Effective Use of the IP System by SME’s
The growth in industrial and service sectors is associated with faster growing economies. Europeans registered a growth of 14.3% by using patents, whereas other countries registered a growth of 8.6% from its use.
Intellectual Property helps stimulate innovation and growth, as it helps bring in monetary returns, build brand visibility and ensure organizational growth. The European Union is trying to create awareness regarding IP among the people through:
- Awareness and Training on IP
- Assisting on Technological Information
- Customized and Personalized IP advice
- Providing financial assistance to bring in the innovation
MED is working with the bulk of activities targeted at improving SMEs by focusing on IP growth.