May 2026 Foreword This partnership bridges the EPO’s expertise in patentdata analytics with ECLAC’s production data and work onproductive development. It also builds on the successfulcollaboration initiated by the EPO and five Latin AmericanIP offices (Brazil, Chile, Colombia, Mexico, Peru) at theoccasion of a study on digital agriculture published inSeptember 2025. Innovation plays a central role in structuraltransformation, productivity growth, and long-termeconomic development. A well-functioning and balancedintellectual property (IP) system can incentivise creativity,facilitate knowledge diffusion, and help firms andinstitutions appropriate returns from innovative activity. Over the past decade, studies have demonstrated thatindustries that are using patents and other IP rightsintensively form the backbone of European economies,driving a disproportionate share of GDP, high-qualityemployment, and external trade. Further researchhas underscored the transformative power of IP atthe microeconomic level: for universities, researchinstitutions, small and medium-sized enterprises (SMEs),and dynamic start-ups, patents and trademarks serve asvital instruments for securing risk finance, acceleratinggrowth, and navigating competitive markets. The joint study offers new evidence on the relationshipbetween patent and trade mark protection and economicactivity in nine countries of Latin America and theCaribbean. By linking IP rights and economic data at ahighly disaggregated level, it provides an up-close viewof how patents and trademarks connect to economicperformance, particularly within the manufacturingsector. The study also helps distinguish between localinnovation activity and foreign technological presence. The central message of the joint study is that IP policycannot operate in isolation. To unlock its full economicbenefit, and to minimize frictions, IP must be integratedinto broader productive development policies. Thestrategic advantages of IP are most fully realised whensupported by strong research capabilities, effectivetechnology transfer mechanisms, access to scale-upfinance, deep university-industry linkages and broaderpolicies aimed at production transformation. For Latin America and the Caribbean (LAC), harnessingthis dynamic is more complex and context dependent.The region faces persistent productivity gaps and limitedproductive diversification. To address these challenges, itneeds to translate knowledge and research capabilitiesinto broad-based economic upgrading. In this setting,patent systems are instrumental to strike the right balancebetween incentives for innovation and technology diffusionin order to support production transformation. Achievingthis will require aligning IP frameworks with widerproductive development policies, as well as strengtheningthe capabilities needed to make them effective. This study is designed to serve as a resource for decision-makers, business leaders, and researchers alike. It is ourshared hope that the insights provided herein will elevateIP awareness, foster stronger regional cooperation, andinspire evidence-based policies that empower LatinAmerica and the Caribbean countries to harness thepower of innovation for productive and sustainabledevelopment. Recognising the imperative to equip policymakerswith robust, region-specific evidence, the EPO andthe Economic Commission for Latin America and theCaribbean (ECLAC) have collaborated with a simple goalof bringing the policy discussion on IPR closer. António CampinosPresident,European Patent Office (EPO) José Manuel Salazar-XirinachsExecutive Secretary, Economic Commission for LatinAmerica and the Caribbean (ECLAC) Contents Executive summary07 1.Introduction211.1.The productivity imperative....................................................................................................................................................................................................................................................................211.2.Manufacturing as a development motor.............................................................................................................................................................................................................................221.3.IPRs and their function in the economy....................................................................................................................................................................................................................................251.4.About this study.........................................................................................................................................................................................................................................................................................................30 2.Opportunities afforded in IPR-intensive industries34 2.1.The use of patents and trade marks in the manufacturing s