In today’s knowledge-driven economy, intellectual property (IP) has become a critical asset for innovative companies. Across the European Union, firms generate valuable ideas, technologies, and brands that fuel competitiveness. However, many struggle to turn these assets into scalable business opportunities.
A new report, “IP-backed Finance in Europe”, developed by the European Union Intellectual Property Office (EUIPO), explores how IP can be more effectively leveraged as a financial asset to support innovation, growth, and competitiveness. It identifies persistent barriers that prevent IP-rich companies, particularly small and medium enterprises (SMEs), from accessing finance, despite their strong economic potential.
The findings point to a significant gap between Europe’s innovation capacity and its ability to fund and scale it. While IP-intensive industries account for nearly half of EU GDP and a substantial share of employment, many firms are unable to use their IP to secure financing. Challenges include difficulties in valuing IP, limited data, fragmented legal frameworks, and cautious lending practices by financial institutions.
The report estimates a substantial SME financing gap and highlights the potential for IP-backed finance to unlock billions in new investment if supported by the right infrastructure. It calls for coordinated policy action to improve IP visibility, strengthen valuation methods, enable risk-sharing mechanisms, and enhance data and stakeholder cooperation.
Additionally, the study contributes to ongoing policy discussions on innovation financing in Europe and outlines practical steps to build a more effective IP-backed finance ecosystem.
Read the full study here.