Factors impacting patent applications in European countries

Abstract

AbstractThe paper investigates the gap in the number of patent applications by European countries in the period 2010–2018. During the observed period, World Intellectual Property Organization (WIPO) received an average of 1.9 applications per million inhabitants per year from the countries of the Western Balkans (WB‐5), which is as much as 98% less than the average for the whole of Europe. The purpose of the paper is to create a model for increasing the number of patent applications in developing countries, which should lead to a higher number of granted patents. The author analyses variables that have an impact on the number of the patent applications (functional literacy, human development index, university/industry research collaboration, and gross domestic spending on R&D) in the developed (EU‐28) and developing (WB‐5) countries. The WB‐5 firms, especially small and medium enterprises (SMEs), do not use of the opportunities offered by intellectual property (IP) protection. They find the system too costly, complex, and difficult to manage. Based on the results of statistical analyses and conclusions from recent literature that tackles the usage of IP, the author builds a model for increasing the number of patent applications among European SMEs that is based on the support of international business support organizations (BSOs). Moreover, the author recognizes the positive impact of international IP support programmes (such as EU IPR Helpdesk ambassador scheme) on the work of local BSOs that deal with IP rights.