"IP Rights Ownership Impacts Corporate Revenue Growth"

A new study has found that whether a company owns intellectual property rights (hereinafter referred to as IP rights) has an impact on its revenue growth.

The Korea Institute of Intellectual Property and the Korea Development Institute (KDI) jointly released a report titled "Analysis of Corporate Revenue Performance by IP Rights Ownership" on May 21.

The performance analysis was conducted at the request of the Presidential National Intellectual Property Committee and the Korean Intellectual Property Office. The report empirically analyzed the impact of IP rights on corporate revenue by combining IP rights big data with management information big data from 228,617 domestic companies between 2010 and 2023.

Revenue Increase Effect by Scale of Owned Intellectual Property Rights. Provided by the Korean Intellectual Property Office

According to the report, domestic companies that own IP rights recorded an average of 20.9% higher revenue per employee compared to those without IP rights. In particular, the types and number of IP rights owned, as well as whether companies engaged in both domestic and overseas activities, led to even more pronounced differences in revenue performance.

The diversity of IP rights held by a company?such as patents, trademarks, and designs?was also found to influence revenue. For example, companies with only one type of IP right had 18.9% higher revenue per employee, those with two types saw a 27.1% increase, and those with three types experienced a 32.7% rise, showing a greater increase in revenue as the diversity of IP rights expanded.

The quantitative difference in the number of IP rights owned also showed a clear impact on revenue performance. Companies with only one IP right had 15.4% higher revenue per employee compared to those without any, while companies with two to nineteen IP rights saw a 24.1% increase in revenue.

Sales Increase Effect by Type of Intellectual Property Rights. Provided by the Korean Intellectual Property Office

Notably, companies that owned 100 or more IP rights saw their revenue increase by up to 50.3%, confirming that quantitative expansion of IP rights can have a positive effect on corporate growth.

Companies that filed for IP rights overseas also experienced a significant increase in revenue. This indicates that the scope of IP rights activities affects corporate revenue. For instance, companies that owned IP rights only domestically had 20.3% higher revenue than those without any IP rights, while those that also filed overseas saw a 27.3% increase, widening the gap.

Lee Kwanghyung, a civilian member of the National Intellectual Property Committee, stated, "This study proves that intellectual property rights are not just a protective measure but a core factor determining a company's business performance. We must actively develop and implement support policies in collaboration with relevant ministries to help domestic companies expand their IP rights."

Kim Wanki, Commissioner of the Korean Intellectual Property Office, said, "This reaffirms that intellectual property is a key asset driving corporate growth. The Korean Intellectual Property Office will expand practical policies such as support for overseas application costs and customized consulting to help small and medium-sized enterprises secure rights effectively in the global market."

This content was produced with the assistance of AI translation services.