IP and the economy - Key roles and impacts

Small business and high growth

For Australian startups, their first patent grant is linked to a significant wage premium for employees and workforce upgrading, likely for commercialisation (Dobson-Keeffe & Falk, 2025).
After their first trade mark registration, Australian firms outperform comparable firms without registered trade marks, with income on average 78% higher, labour productivity 16% higher and total factor productivity 6% higher after grant. The results point to medium-term revenue gains consistent with firm scaling (Nguyen, 2026).
After their first patent grant, Australian firms outperform comparable firms without patents, with income on average 43% higher, total factor productivity 14.6% higher and labour productivity 3% higher after grant. The results point to deeper improvements in production efficiency and technical capability as the firm implements new technology (Nguyen, 2026).
For Australian firms in design right-intensive industries, holding registered or certified design rights is linked to higher productivity, R&D spend and exports (Kollmann et al., 2022).

US studies find that a startup’s first patent increases its chances of securing venture capital funding in the next three years by 47% (Farre-Mensa et al., 2019); more trade marks at first VC investment is associated with greater long-run sales and employment, and higher likelihood of successful exit via acquisition or IPO (Bayar et al., 2025).
Based on a US study, a startup’s first patent increases its chances of securing venture capital funding over the next three years by 47%, and of securing a loan by 76%.
International studies estimate that patents and trade marks increase investors’ estimates of a startup’s value by around 20% in certain industries (especially in the early development stage and early financing rounds) (Hsu & Ziedonis, 2013).
For small innovators, the ability to influence patent grant timing results in more follow-on innovation, more commercialised products and greater lifetime value to their IP, by allowing time to secure venture capital and partners (Higham et al., 2025).
Patent grants are a significant forward indicator of the likelihood that Australian businesses will form collaborations such as joint R&D and commercialisation arrangements (Menezes et al., 2024; Nguyen & Falk, 2024).

During the COVID-19 shock, firms that were more patent-intensive were less likely to exit, especially if they engaged in R&D and invested in intangibles (Battisti, M., 2023).
When they can resell their IP on secondary markets, businesses may increase their IP activity when facing uncertainty. For example, patents can act as a store of value, allowing businesses to later recoup their investments in knowledge by licensing or trading the IP (Park et al., 2025).
After obtaining a trade mark in an export market, Australian manufacturers tend to expand and diversify their exports more in response to tariff and exchange rate shocks (Falk, 2021).

Findings are drawn from the referenced studies and the Australian IP Report series leveraging Australian Bureau of Statistics Business Longitudinal Analysis Data Environment (BLADE) and Person Level Integrated Data Asset (PLIDA) data.