The Impact of Patent and Trademark Applications on Startups’ Sales: Evidence from the Machinery Industry

This study empirically analyzes the impact of patent and trademark application strategies on the sales performance of startups in the domestic machinery manufacturing sector. A total of 731 startups that filed their first patent or trademark application in 2013 were categorized into three groups: the patent-only application group, the trademark-only application group, and the simultaneous patent and trademark application group. By tracking and analyzing their financial performance and intellectual property portfolio characteristics over a ten-year period from 2013 to 2022, this study evaluates the specific effects of technological innovation and brand strategies on startups’ sales. The results indicate that patent applications have a significant positive effect on sales, highlighting their critical role in securing technological competitiveness. In contrast, although trademark applications did not demonstrate a direct sales increase effect, they were identified as strategic assets contributing to brand recognition and market trust. Notably, startups in the simultaneous application group achieved superior outcomes not only in sales but also in operating profit and employment growth. Furthermore, within this group, broader technological scope of patents and wider market scope of trademarks were associated with higher sales revenue. These findings underscore the complementary utilization of patents and trademarks as a key factor for sustainable growth in startups. Therefore, this study emphasizes the importance of an integrated intellectual property portfolio strategy for the long-term development of machinery manufacturing startups and suggests the necessity of policy measures to support such strategies.