Korean companies which own IP see higher revenue – the more IP rights, the better

Photo by Yu Kato on Unsplash

Korean companies which own intellectual property (IP) reported average revenue per employee 20.9% higher than those without IP, according to a new report covered by Korean business news site Chosun.

The report, Analysis of corporate revenue performance based on intellectual property rights, from the Korea Institute of Intellectual Property (KIIP) and the Korea Development Institute (KDI), is based on research commissioned by the Korean National Intellectual Property Commission and the Korean Intellectual Property Office (KIPO).

Chosun says the study analysed data from more than 225,000 Korean companies between 2010 to 2023 to assess the impact of IP rights on revenue.

Corporations with registered IP rights such as patents, trademarks, and designs had higher revenues. Corporations that held only one type of registered IP reported 18.9% higher revenue per employee, those with two types had 27.1%, and those with all three types had 32.7% more. On average, IP rights owning companies had 20.9% higher revenue than corporations without intellectual property rights.

The number of actual rights (as opposed to the type of right) owned also impacted revenue, the report says. Companies with only one IP right had 15.4% higher revenue per employee compared to those without any. However, those holding between two and 19 rights reported 24.1% higher revenue, and those with over 100 rights had 50.3% higher revenue.

The report added that companies that filed overseas IP applications had 27.3% higher revenue than those without.

Chosun quotes Lee Kwang-hyung, the chairman of the National Intellectual Property Commission, as saying: “This study proves that intellectual property rights are not merely protective mechanisms but core elements that influence corporate performance,”

Korean Intellectual Property Office Commissioner Kim Wan-ki noted: “It has been reaffirmed that intellectual property is a key asset driving corporate growth.”