EUIPO Report on IP-Backed Finance Makes Policy Recommendations to Unlock Up To 580 Billion in Innovation Financing
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EUIPO Report on IP-Backed Finance Makes Policy Recommendations to Unlock Up To 580 Billion in Innovation Financing
"Without transactions, no data accumulates; without data, risk assessment remains conservative; without credible risk assessment, no instruments can scale. This cycle perpetuates the credit gap faced by SMEs."
"The estimated credit gap for SMEs in the EU stands at €365 billion per year, highlighting the urgent need for structural changes to facilitate IP-backed financing."
"Adopting the appropriate infrastructure for IP-backed instruments could capture between 40% to 80% of the addressable market, potentially mobilizing €580 billion over a decade."
The EUIPO study reveals that EU SMEs face a €365 billion credit gap annually, despite a potential IP-backed finance market of €70 billion to €150 billion. Information asymmetries and the unique valuation of IP assets hinder risk assessment and financing access. The lack of secondary markets for IP further complicates valuation, leading to conservative lending practices. The report suggests that addressing these barriers could unlock up to €580 billion in additional financing over the next decade, enhancing economic value across the EU market.
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