Patents Support Higher Productivity and Better Paid Jobs in Latin America and the Caribbean - EPO
19-May-2026
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Source : The European Patent Office (EPO)
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• Manufacturing industries using intellectual property rights (patents and trademarks) in the region account for 13.6% of GDP and 1.6 million jobs in the LAC region
• Innovation in Latin America and the Caribbean is driven significantly by universities and public research organizations (29%)
• The region remains a net importer of patented technologies, with over 85% of patents filed by foreign applicants
MUNICH - A joint study by the European Patent Office (EPO) and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), finds that manufacturing industries (e.g., automotive, electronics, pharmaceuticals) relying on patents and trademarks make a strong contribution to the economic performance in Latin America and the Caribbean (LAC). At the same time, the study points to structural challenges that limit the region’s ability to fully capture the full economic returns from innovation, a press release stated by EPO.
The study finds that manufacturing industries that make greater use of intellectual property rights (IPR) account for 13.6% of GDP and around 1.6 million jobs across the region. Productivity levels in these industries are significantly higher than in other sectors, translating into better‑paid employment with average wages around 30% higher. This effect is particularly strong in patent‑intensive industries, with productivity gains of 16% and wage premium exceeding 50%, on average.
“Industrial property can support development, but its economic impact depends on the broader innovation ecosystem and the policy frameworks that support it,” said EPO President, António Campinos. “The region already has significant talent and scientific expertise, but commercialization skills, technology transfer capabilities and stronger university-industry links, together with effective public policies and greater regional cooperation, are essential to turn innovation into sustainable value.”
“Latin America and the Caribbean need the discussion on intellectual property to mature and align more with other productive development policies; one that focuses less on intellectual property as a tool in isolation and more on the ecosystem in which it operates. Intellectual property can contribute to development, but it will do so more effectively when it forms part of comprehensive productive development policies aimed at closing technological gaps, strengthening domestic capacities and improving the region’s position in higher value-added activities,” said José Manuel Salazar-Xirinachs, Executive Secretary of ECLAC.
Patent‑intensive industries generate high value, but much is imported
Trade and patent flows from outside the LAC countries far exceed cross‑border flows within the region, underlining the region’s dependence on foreign technologies. Despite their strong economic contribution, the study finds that Latin America and the Caribbean remain net importers of patented technologies and products. While IPR-intensive manufacturing industries account for only 9% of their exports, they represent 19% of imports, with patent‑intensive products alone accounting for 15%.
This imbalance is also mirrored in patenting activity: more than 85% of patent applications filed in the LAC region originate from foreign applicants, while domestic applicants, mostly from Brazil and Mexico, account for just 13.5% of filings.
Hidden potential for domestic innovation
At the same time, the study identifies significant unexploited innovation potential within the region. Public research institutions, such as universities and national laboratories, account for 29% of all patent filings in the region between 2016 and 2020. Around half of their patenting activity is oriented towards patent‑intensive manufacturing, making them a key source of innovation for local industry.
The study also identifies a widening gap between where innovation is created and where it is owned. In 2020, the global share of technologies invented in the LAC region was almost 80% higher than the share of patents owned by LAC applicants. This gap is particularly visible in computer technology, where a large share of inventions originating in the region are owned by foreign companies, primarily based in the United States and Europe.
The analysis covers manufacturing activity in nine LAC countries - Argentina, Brazil, Chile, Colombia, Ecuador, El Salvador, Mexico, Peru and Uruguay – and concludes that stronger collaboration, technology transfer and innovation partnerships within and between LAC countries could help the region better exploit its domestic innovation capacity and reduce reliance on imported technologies.