IP/C/W/629  
 
24 May 2017  
(17-2825) Page: 1/2 
Council for Trade -Related Aspects of  
Intellectual Property Rights  Original: English  
 
INTELLECTUAL PROPERT Y AND INNOVATION: IN CLUSIVE INNOVATION  
AND MSME GROWTH  
COMMUNICATION FROM A USTRALIA, CANADA, TH E EUROPEAN UNION, JA PAN, SINGAPORE, 
SWITZERLAND, CHINESE  TAIPEI AND THE UNITE D STATES  
The following communication, dated 23 May 2017, is ci rculated at the request of the D elegations of 
Australia, Canada, the European Union, Japan, Singapore, Switzerland, Chinese Taipei and the 
United States.  
 
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1.  The important role of IP in the growth and success of innovative MSMEs has long been  
recognised: it allows innovative and creative businesses to capture the results of their creativity, 
inventiveness and R&D investments, and creates incentives for further investment in innovation. 
In many cases, businesses using IP rights in innovative an d creative industries tend to perform 
better, and this is often true in the case of MSMEs. MSMEs owning IP rights have often higher 
revenue per employee than MSMEs that do not. In many cases, they also expand their workforce 
faster and pay higher salaries.  IP can therefore be considered a key component for smart and 
sustainable growth.  
2.  Yet, even in developed countries, only a smaller portion of MSMEs make use of IP, compared to 
larger companies. The underuse of IP by MSMEs may be due, in part, to the fact t hat they are not 
aware of the benefits, they may lack the necessary expertise or find that procedures are too slow 
or costly. The need to support greater usage by MSMEs of the IP system as a tool for growth and 
cooperation is accordingly an important chall enge for all countries, developed, developing, and 
least-developed.  
3.  Given that innovation performance at all levels of the value chain and at any level of economic 
development is made up of businesses whose most valuable assets are intangible, innovative a nd 
creative , MSMEs need to be aware of the advantages of using IP and the potential risks of 
neglecting it. Once protected, these rights have to be managed to generate value and thus enable 
innovation to play its full role in the development of the economy .  
4.  Members can help MSMEs by fostering IP awareness through many avenues. Because these 
avenues are ultimately common to all Members, we see a chance that the exchange of best 
practices can enable us to learn from each other and eventually increase the use  of the IP system 
by MSMEs.  
5.  A variety of different strategies and support measures are discussed and applied by Members, 
in order to encourage and help MSMEs in the use of the IP system. Such measures comprise, for 
example:  
i. IP awareness schemes and person alised assistance for MSMEs or providing 
cooperation (licensing) platforms;  
ii. developing IP mediation and arbitration networks for MSMEs ; 
iii. improving coordination of IP support and research and innovation funding schemes . IP/C/W/629  
 
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  6.  Members are invited to share domestic experiences and examples of successful measures 
promoting inclusive innovation and MSME growth – in particular, how IP frameworks and 
innovation policy or programmes have assisted MSMEs to successfully scale -up, help create 
economic growth and employment, and foster participation in the global t rading system and value 
chains.  
Guiding questions:  
 
a. What examples or case studies can Members share that illustrate how IP effectively 
contributed to the growth of MSMEs?  
b. What awareness -raising measures, schemes or personalised assistance have Members 
enacted or are planning  to offer in order to allow MSMEs to engage in innovative 
activit ies which allow them to benefit better from the IP system (i .e.: access to incubator 
and accel erator networks, innovation clusters,  access to low cost finance, etc.)?  
c. What specific IP or MSME policies have proven successful in overcoming the often 
comparatively lower use of IP rights by MSMEs?  
For any questions or comments, please contact the Delegation of the European Union at 
jan.schmitz@ec.europa.eu . 
 
 
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