ARTICLE18 July 2024

The forgotten potential of SMEs

There are companies whose potential is often forgotten even though they are the backbone of the economy. These companies are the small and medium-sized enterprises. Whenever there is a discussion on competitiveness these companies are often left out of the equation.

Christina Wainikka, Policy Expert Intellectual.Photo: Ulf Börjesson/Ernst Henry Photography AB

There are some factors that can be emphasized. One is the importance of these enterprises. For the Confederation of Swedish Enterprise they may make up for 98 % of the members. Another important factor is that we live in a knowledge economy. The competitiveness of different regions and countries is to a large extent linked to the ability to handle knowledge and knowledge-based assets.

Several studies have been made regarding the SMEs use of intellectual property rights. It has been shown that these enterprises have even more possibilities to benefit from registering different rights, such as patents and trademarks. One study, involving 127 000 companies, showed that those SMEs that had for example registered a trademark had 68 % higher revenues than those entities that had not taken that step. However, only about 10 % of the SMEs within the EU have done that kind of registration. Noone can doubt the potential for economic growth that is hidden in these numbers.

The conclusion that there is a potential for economic growth to be found in how SMEs use intellectual property rights has been drawn by many countries around the world. These countries have started to take action in different ways. At the IP5 Heads of Office and IP5 Industry meeting earlier this summer in Seoul, South Korea this was one agenda point.

IP5 consist of the five largest patent offices in the world, namely the European Patent Office (EPO). the Japan Patent Office (JPO), the Korean Intellectual Property Office (KIPO), the National Intellectual Property Administration of the People’s Republic of China (CNIPA) and the United States Patent and Trademark Office (USPTO).

One part of this collaboration is meetings with industry from the same countries and regions. Europe is represented by BusinessEurope. BusinessEurope has 21 million member companies in 36 countries. I had the honor of being head of the BusinessEurope delegation at the meeting in Seoul.

At the IP5 Heads of Office and IP5 Industry in South Korea, the patent offices presented a joint report “The Role of IP in fostering the growth of SMEs”. The aim of the report was to share the five offices different efforts to help SMEs benefit from intellectual property rights. In Japan, there is a network called “IP Business Management Support Network”. The aim is not only to provide information on intellectual property rights, but also how they can be used in a strategic way. In South Korea the educational system has been one focus of the governmental efforts. This includes education on intellectual property rights at all educational levels. They have even developed educational programs on “IP literacy” as part of efforts in lifelong learning.

In Sweden, the government has not very much to report on these issues. Some ten years ago the government did some efforts. The Swedish Intellectual Property Office and the Swedish Innovation Agency were assigned resources and an assignment regarding for example help to SMEs.

Nowadays, these authorities shall still be responsible for informing SMEs on intellectual property, but there are no specific resources assigned to. It can also be well noted that when the Swedish government talks about productivity, growth and competitiveness intangible assets do not seem to be part of the equation.

It can be perceived as if the Confederation of Swedish Enterprise is standing on the sidelines complaining about lack of activity from others. In the IP Policy from the Confederation of Swedish Enterprise one of the challenges mentioned is lack of knowledge, but is that something that only others shall solve? Absolutely not!

The Confederation of Swedish Enterprise has some 60 000 members, whereof 98 percent are SMEs. That means that helping SMEs is also an important task for the organization. Here are some examples of what has been done.

Reaching out to schools
There are not many textbooks in Swedish on intellectual property that can be used for teenagers. The Confederation of Swedish Enterprise has written such material and also added films on YouTube to be used by schools. https://eduna.se/immaterialratt-att-ta-hand-om-innovationer.html

Lectures all over Sweden
Knowledge on IP has to be spread all over Sweden. The Confederation of Swedish Enterprise is out there, participating in seminars and lecturing to different audiences. One example is a lecture in Sundsvall to be held in September.

”Who owns what” – series of seminars
Knowledge-based assets have their origin in the knowledge of different individuals. It is therefore crucial to define who owns what. The Confederation of Swedish Enterprise have organized series of seminars on the topic of who owns what in relation to intellectual property. Many of these seminars can be seen afterwards online.

Newsletters
The Confederation of Swedish Enterprise has two newsletters on intellectual property, one in Swedish and one in English

The Confederation of Swedish Enterprise also participates in international events. One example of that is participation in the SME Assembly, arranged by the European Commission. The Confederation of Swedish Enterprise also participated in a seminar at the World Chambers Congress in Geneva with the headline “Innovation by all and for all”

Noone can accuse the Confederation of Swedish Enterprise of standing on the sidelines complaining. However, it can not be the role of this one organization to make sure that Swedish SMEs can to a larger extent, through intellectual property, contribute to Swedish competitiveness. What is being done in China, USA, South Korea and Japan should serve as an example for Swedish decision makers. How is Sweden otherwise to be competitive?

The IP Policy of The Confederation of Swedish Enterprise
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Contact our EU Office

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Subscribe to our Swedish newsletter
Publisher and editor-in-chief Anna Dalqvist