Publication of the study "IP-backed finance in Luxembourg – Using Intellectual Property Rights as a source of finance"

Intellectual property (IP) intensive products and services, particularly in key areas such as renewable energies, circular economy and artificial intelligence, are of the driving forces behind the green and digital transformation of the economy.

To assess the potential of intangible assets held and developed by SMEs to access financing, the Ministry of the Economy has carried out a study entitled "IP-backed finance in Luxembourg – Using Intellectual Property Rights as a source of finance". The study is part of an international project launched by the World Intellectual Property Organisation (WIPO).

The results of this first of its kind study in Luxembourg show that while IP owners are increasingly trying to use their intangible assets to access financing, they still face a number of obstacles.

Indeed, despite the existence of a fully developed legal and regulatory framework in the field of intellectual property and a strong banking and financial presence in Luxembourg, there is a significant untapped potential for synergies between these two areas.

Given the major contribution made by SMEs to growth and innovation, the study must be seen as an inventory of existing practices. It therefore suggests avenues to explore, enabling rights holders to take full advantage of their intangible assets, while at the same time broadening the scope of their IP strategy.

"To ensure that our businesses can develop in an attractive environment, it is clear that intellectual property is not just an option, it is becoming more than ever an economic issue that must absolutely be taken into account, including in the context of the green and digital transition. This study shows that there is still a great deal of work to be done in order to make full use of public and private funding resources for the development of intellectual property rights held by SMEs", emphasised Franz Fayot, Minister of the Economy.

Press release by the Ministry of the Economy

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