IP is Key to SMEs’ Future Development

September 19, 2021

From September 15 to 18, the first SME International Cooperation Summit co-hosted by the Ministry of Industry and Information Technology (MIIT), the State Administration for Market Regulation (SAMR) and the People's Government of Guangdong Province was successfully held in Guangzhou. Mr. Ma Xingrui, Governor of the People's Government of Guangdong Province, presided over the Opening Ceremony. Mr. Li Xi, Secretary of Guangdong Provincial Committee of the CPC, Mr. Jurin Laksanawisit, Deputy Prime Minister of Thailand, Mr. Xiao Yaqing, Minister of MIIT, Mr. Zhang Gong, Minister of the State Administration for Market Regulation (SAMR), Mr. Daren Tang, Director General of the World Intellectual Property Organization (WIPO), Mr. Li Yong, Director General of the United Nations Industrial Development Organization (UNIDO), and Mr. Zhao Houlin, Secretary General of the International Telecommunication Union (ITU) gave opening remarks at the Summit. Mr. Marco Aleman, Assistant Director General of WIPO, IP and Innovation Ecosystems Sector, participated in the discussion of the SME Ministers’ Roundtable online.

Highlights of video speech by WIPO Director General Mr. Daren Tang:

We meet as the pandemic continues to wreak havoc on lives and livelihoods around the world. Economies, societies, businesses and communities have all been severely affected. This includes small and medium-sized enterprises (SMEs) who have seen business costs skyrocket, market demand plummet and cash flow dry up.

Against this backdrop, many SMEs around the world find themselves at a critical juncture – with their very survival at stake. This demands the attention of the international community as SMEs play a vital role in the global economy – making up 90 per cent of all companies in the world, employing 70 per cent of the labor force and generating up to half of global GDP.

Based in Guangzhou, EHang specializes in autonomous aerial vehicles. Its mission is a bold one: to make safe, autonomous and eco-friendly air mobility accessible to all. IP runs through everything that EHang does – it is a vital component of their business strategy and key to their future development. The same is true of millions of innovative and creative businesses across China.

There are more than 40 million SMEs in China, contributing to over 50 per cent of taxes, 60 per cent of GDP, 70 per cent of innovations and 80 per cent of employment. Companies like BOE Technology and Ping An – which started their journey as SMEs and use IP to grow - now file hundreds of applications to protect their new inventions via WIPO’s PCT system. Likewise, companies such as Ninebot and Beijing Electric Vehicle are recording double-digit growth in their use of WIPO’s Hague System for Industrial Designs. These are just some examples of how innovative and creative SMEs in China are using IP to drive business growth.

I am therefore pleased that WIPO colleagues were able to participate in the SMEs Ministers’ Roundtable yesterday. It is crucial that we work together to increase awareness of the IP system among SMEs and how it can support business around the world to develop and grow.

As the UN agency for innovation and creativity, WIPO is committed to developing a balanced and effective global IP ecosystem. Our vision, as articulated within our recently published Medium Term Strategy Plan, is of a world where innovation and creativity from anywhere is supported by IP for the good of everyone. As part of this approach we must continue to raise awareness of IP at the grassroots level, including amongst SMEs. For instance, earlier this year’s World IP Day centered on the theme of “SMEs – from Ideas to Market”, showcasing the human ingenuity and creativity behind every SME and how the IP system can help support SMEs to realize their aspirations.

WIPO also has a dedicated program to support SMEs which is housed in our IP and Innovation Ecosystems Sector (IES). This Sector supports SMEs in two ways: through the development of tools and materials and via customized programs and projects.

For tools and materials, WIPO has developed a number of guides that explain how IP assets can be successfully managed, as well as an on-line IP self-assessment tool that allows SMEs to identify their IP assets and receive an automated report on how they can be leveraged effectively.

In terms of projects, we have also begun working with SME intermediaries in all regions of the world, including in the Asian nations of Indonesia, Thailand and Vietnam. Our aim is that this practical support will strengthen the capacity of SMEs and their support institutions.

At the operational level, WIPO’s Global IP Services provide and will ensure fast, convenient and cost-effective IP protection mechanisms for SMEs who wish to take their IP beyond their local markets.

Over the last ten years, applications received under these services have grown by more than by 60 per cent and we anticipate that demand will continue to grow in the years ahead.

More broadly, WIPO’s range of platforms and databases provide SMEs with free or low-cost access to sophisticated IP tools and services.

SMEs currently represent almost one in four users of WIPO’s Arbitration and Mediation Center (AMC) and since July, the Center has applied a 25 per cent reduction on its fees in cases where one or both parties is an SME.

As the world seeks to rebuild from the pandemic, it is vital that we continue to support SMEs to use IP effectively and strategically.

During this time of crisis and opportunity, WIPO will continue to strengthen our efforts to build an inclusive, balanced and forward-looking IP ecosystem for the benefit of all.

We look forward to working with all Member States and our global partners to bring this vision to life and to supporting SMEs the world over.

At the SME Ministers’ Roundtable, Mr. Marco Aleman, Assistant Director General of WIPO, pointed out that SMEs, who play an important role in the recovery of the economy, are facing the most severe impact because of the Pandemic. The innovation, effective assets and intellectual property rights would be the critical tool for SMEs to gain competitiveness and realize their growth strategy. WIPO, he said, is open to exploring different opportunities to cooperate with governments, private sectors and other agencies to develop intellectual property tools for the survival and development of the SMEs.

About the SME International Cooperation Summit

Themed "Build a Shared Future Through Innovation and Development", the SME International Cooperation Summit was co-hosted by the Ministry of Industry and Information Technology (MIIT), the State Administration for Market Regulation (SAMR) and the People's Government of Guangdong Province. The Summit aimed to explore cooperation opportunities in innovative technologies, deepen international cooperation, and help SMEs accelerate their integration into the global value chain in the post-pandemic era in a bid to pursue mutual benefit and win-win cooperation and promote common prosperity. The Summit consisted of one ministerial-level roundtable centering on SME policies, one main forum, five sub-forums and five thematic activities. A number of senior officials from SME administrations and industry elites home and abroad, as well as representatives from international organizations attended the Summit to share their strategies, policies, practices, and experiences in support of SME development.