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Innovative SMEs overlook funding and protection

OUT-LAW News, 17/01/2005 

Most innovative firms in the EU do not apply for the public money for which they are eligible and do not attempt to protect their innovations with either patents or trade marks, according to a survey for the European Commission.

The 224-page EU Innobarometer survey was carried out by EOS Gallup Europe to assess the take-up of public sector innovation support programmes.

While 31% of innovative EU firms used at least one form of public sector support, only 12% used public schemes for which they were eligible. Seventy-one percent thought that public sector support was not crucial to realising an innovation project.

A total of 4,534 executives from EU companies with 20-500 employees were questioned for the survey in September and October 2004.

Only 13% of firms used an innovation network that included other companies, universities or research bodies.

Only 12% of all firms questioned had applied for a patent. "This could be explained," said the report, "by the irrelevance of patents for firms in the service sector but we could nevertheless wonder if certain firms are receiving an adequate financial award for their invention as the vast majority have not even requested the licence for exclusive rights to sell their innovative product."

Fourteen percent had registered international trade marks.

Of the firms classed as innovative, however, the figures were higher: 41% have applied for a patent and 46% have registered one or more international trade marks.

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