Unitary patent could drive €14.6bn in high-tech trade: EPO
Improved harmonisation of the European patent system could drive a €14.6 billion ($17.1 billion) increase in trade across high-tech sectors.
This is the finding of a study published today, November 14, by the European Patent Office (EPO), called “Patents, Trade and FDI in the European Union”.
The study, carried out by a team of economists from the EPO, the University of Colorado Boulder and the London School of Economics, found that the unitary patent could enhance tech transfer in the EU through more trade and foreign direct investment (FDI).
However, the unitary patent and the Unified Patent Court (UPC) have still not been implemented because the UK and Germany have not ratified the UPC Agreement.
The study said that harmonisation of the patent system has the potential to increase trade and FDI in high-tech sectors by up to 2% and 15% in the EU, leading to annual gains of €1.8 billion in FDI and €14.6 billion in trade.
For the 15 EU countries “most affected by the changes”—Austria, Bulgaria, Cyprus, the Czech Republic, Greece, Hungary, Lithuania, Malta, Poland, Portugal, Romania, Slovakia, Spain, Sweden and the UK—this would mean increases of 5% in trade and 29% in FDI.
Patents have a positive effect on trade and FDI in Europe, according to the study, but their impact is “currently hindered by the lack of truly barrier-free EU-wide patent protection”.
ICT, chemicals and medical devices are among the high-tech manufacturing industries that the study focused on and, compared with other industries, these “high-IP” sectors are found to be major contributors to EU exports and FDI flows to the rest of the world.
But the study shows that the “contribution of these industries to trade and FDI flows between EU countries is still limited, suggesting untapped potential to achieve an EU single market for technology”, it said.
Benoît Battistelli, president of the EPO, said: “This study provides further evidence of the benefits of patent protection for the European economy. It sets out in particular the direct benefits of greater harmonisation of the system for our region.”
He added that the unitary patent and the UPC “will be a vital step towards the realisation of an EU single market for technology, and will support productivity growth and economic development in Europe”.
António Campinos, the current executive director of the European Union Intellectual Property Office, will replace Battistelli in July next year.
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