7 Facts Showing the Power of Patents

Wednesday, Nov 7th, 2018

Patents matter. But it’s not just the small-time inventor in the garage that feels the benefit of patent and IP ownership. Startups, small business, American workers, and the overall U.S. economy all benefit from a strong patent system. Here are 7 facts showing the power of patents and intellectual property:

  1. Patents Increase Startups’ Employment Growth

Approval of a startup’s first patent increases its employment growth by 36% on average over five years.1 

  1. Patents Grow Startups’ Sales

Startups with a patent grow their sales an average of 51% more over 5 years than those without a patent.1

  1. Patents Increase Likelihood of Firm Success

A successful patent application increases a firm’s likelihood of going public by over 150%.3

  1. Patents Help Drive American Small Businesses

Small businesses employ 37% of all scientists, hold over 120,000 patents, and patent new tech at rates 16.5 times higher than larger firms.1

  1. IP-Intensive Industries Support 30% of U.S. Employment

In 2014, IP-intensive industries supported 45.5 million jobs in the U.S., about 30% of all employment.2

  1. Workers in IP-Intensive Industries Make Higher Wages

In 2014, workers in IP-intensive industries earned an average weekly wage 46% higher than those working in non-IP intensive industries.2

  1. Patents and IP Have a Big Effect on Economic Activity

Total economic activity from patents and intellectual property has been estimated at over 8 trillion, over 1/3 of U.S. GDP.1

  

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