Green tech innovation spurs German and EU IP growth

Germany now leads the EU in patents and IP, with green tech the most pronounced element in this growth, according to an influential new study from the European Union.

As the European Patent Office and the European Union Intellectual Property Office recently detailed – German companies are leading Europe in the use of IP – and new products and innovative technologies help spur business success with increased sales.

Yann Ménière, Chief Economist of the European Patent European Patent Office recently provided insight into the study’s findings in an industry interview — explaining that sectors with a higher need for intellectual property rights make an above-average contribution to economic performance in Germany compared to the rest of Europe.

At present, IP-intensive sectors account for more than 48% of patents and one-third of employment in Germany (with Europe overall at a lower rate) – as Germany has a high proportion of manufacturing industries. – such as auto and mechanical engineering.

Ménière indicated that IP-intensive business makes Germany more productive and efficient – with better pay – averaging 41% higher than in other industrial sectors. Average weekly wages in IP-intensive sectors, for example, is 840 euros, compared to 597 euros in other sectors. And IP-intensive businesses in the EU employ more that sixty-one million people and generate 6.4 trillion euros.

Half of GDP in Europe, therefore, is generated by non-IP intensive industries, such as logistics, agriculture, or healthcare – where patents may be used indirectly.

Notably, innovation in climate protection tech has been increasing – where German companies lead the way with 42% of patent applicants in the EU. Consequently, the economic contribution of green patents is increasing.

Notably, Ménière does not believe the energy crisis and potential recession will lead to a decrease in innovation and patent applications. He sees rising energy prices as a spur to innovation as green tech becomes more necessary – and profitable – when energy is scarce and expensive.

As the report detailed, patent applications for climate change technologies recently reached a record high. In Germany, for example, industries that have applied for climate change-related technology patents account for almost 13% of all jobs and just under a fifth of economic output.