The EUIPO has just published a landmark report,    

Europe is rich in ideas, talent and innovation. Yet many innovative EU businesses hit a familiar barrier when it comes to growing and competing internationally.

Too often, innovative European companies struggle to access the financing they need to succeed. Talent is not the problem. Ideas are not the problem. The difficulty lies elsewhere.

A recent study by the European Union Intellectual Property Office (EUIPO) sheds light on one part of this challenge. Intellectual property continues to be treated primarily as a legal instrument, rather than as what it increasingly is: a core economic asset with clear financial value.

Intellectual property rights like trade marks, patents, copyright and designs sit at the centre of today’s knowledge-based economy. For many companies, especially small and medium-sized enterprises, start-ups and scale-ups, intangible assets represent a substantial share of their overall worth. In practice, however, these assets rarely play a role when companies seek external finance.

This gap matters.

Intellectual property‑intensive sectors already account for around 48 % of the European Union’s gross domestic product and almost 31 % of total employment. Previous research has shown that companies, especially SMEs, that register IP rights, perform better than those that do not. Despite this, only a small proportion of companies that own intellectual property rights have attempted to use them to secure financing. As highlighted in EUIPO analysis, intellectual property portfolios are rarely professionally valued, leaving key assets largely invisible when important investment decisions are made.

The consequences are tangible. Promising ideas struggle to move beyond their early stages. Innovative businesses hesitate, delay decisions or look elsewhere. Europe performs strongly in research and scientific expertise, but continues to face difficulties when it comes to scaling innovation into sustained economic success.

Several structural factors lie behind this situation. Fragmented capital markets, remaining barriers within the Single Market and limited experience in valuing intangible assets all reduce the use of intellectual property as collateral. At the same time, many banks and investors still lack the tools and confidence needed to assess these assets in a consistent and comparable way.

The broader economic impact is becoming increasingly visible. Productivity growth in Europe has remained modest, while the gap with other global economies has widened. Financing constraints are one element of this trend, and the underuse of intellectual property in financing decisions continues to hold businesses back.

There are also clear warning signs. Some of Europe’s most innovative companies are seeking better conditions abroad. When businesses relocate to access finance, the loss is not limited to capital. Skills, jobs and long‑term competitiveness tend to follow.

And yet, this is not a story of missed opportunities alone.

Better recognition of intellectual property as a financial asset could mobilise substantial new investment in the IP-rich firms each year across the European Union. Over time, this could translate into greater financing for innovative businesses and a meaningful contribution to economic growth.

Turning this potential into reality requires change. Intellectual property assets need greater visibility within the financial system. Valuation practices must become clearer and more widely accepted. Cooperation between businesses, financial institutions and policymakers is essential, supported by better data and shared understanding.

In this context, early ecosystem building initiatives, such as the Virtual Community set up under the European Cooperation Project focused on business and innovation support (i.e. the so called ECP4 and the European Intellectual Property Information Centre, EPIC), can play an important enabling role. Building on the catalogue of services developed through this Virtual Community, the initiative helps to improve the visibility and exchange of information on emerging IP backed financing initiatives. By connecting national IP offices with relevant financial and policy stakeholders, it supports coordination, awareness raising and knowledge sharing at an early stage of market development.

Businesses themselves also have a role to play. Managing intellectual property strategically and integrating it into broader business planning can strengthen their position when seeking finance. Intellectual property should not be treated as an administrative afterthought, but as a central element of business strategy.

At a time when Europe is looking for ways to reinforce its competitiveness and support sustainable growth, the conclusions of recent EUIPO research are hard to ignore. Recognising the full economic value of ideas, and making better use of intellectual property as a financial asset, offers a practical path forward built on Europe’s existing strengths.

To learn more, consult the EUIPO study on intellectual property‑backed finance here.

You can also explore the topic further in our latest podcast episode, “From lab to market: IP as the competitive advantage”, and join the upcoming webinar “Train the Adviser – IP and finance: monetising IP rights” on 20 May 2026. The session will explore how intellectual property rights can generate value for businesses through licensing, co-branding, franchising and other monetisation strategies, while also providing an introduction to IP valuation and due diligence.