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Patents positive effect on profitability of SMEs

Applying for patents for inventions is definitely lucrative for SMEs. Although it is often assumed that the advantages do not outweigh the disadvantages, patents have a positive effect on the profitability of SMEs. This has been revealed by research conducted by the University of Groningen and the KU Leuven.
Just as it does for large firms, patent protection enables SMEs to generate more revenues from new products or services, and thus realise significantly larger profit margins. The costs involved in applying for and renewing patent protection do not counteract the positive effects.
In comparison with large firms, SMEs make much less use of patent protection. Whereas 43% of the large firms examined used the patent procedure, only 17% of the SMEs did so! Faems and Andries say that SMEs should become more aware of the value of the patent procedure. The development of a joint EU patent, as approved by the European Parliament at the end of 2012, could possible remove some of the remaining barriers.

This research was conducted by KULeuven - ECOOM (Expertisecentrum O&O monitoring) and the University of Groningen in 358 Flemish companies.
source: Royal University of Groningen

Moreover, from 2014 onward, the legislation on the fiscal deduction of patent generated revenues will be even more interesting for SMEs:

The company will no longer be obliged to dispose of a autonomous research centre to develop or to optimise - in the case of a licence - a patent. This condition required the engagement of an enormous amount of proper means, and could not be met by too many SMEs.