Olena Orliuk, Director of the Ukrainian National Office for Intellectual Property and Innovations.
When it comes to advancing an intellectual property (IP) system, a state must develop tools that are as accessible as possible to aid in its profitability. In other words, all developments to your IP system should ultimately generate income for the inventors and innovators themselves, for the state and for investors.
For international investments, there is a whole set of factors that allow foreign investors to enter the country. Intellectual property rights (IPR) protection policy is one of the key components of this process and serves as a kind of guidepost for any investor—foreign or domestic.
For example, one of the components of this policy is a high level of IP culture, in which developers are knowledgeable about the mechanisms for protecting intellectual property and, in parallel with creating an innovative product, also take care of its legal protection. This is the main key to the successful commercialization of an intellectual product, which will bring profits both to the authors and to investors.
In this article, I will reflect on the importance of this through the lens of my experience as director of Ukraine’s National Office for Intellectual Property and Innovations.
The Importance Of IP: Global And Local Context
Why does intellectual property play such a big role for investors? Because the global economy is confidently transforming into a knowledge economy: Its foundation consists of innovations, technologies and data, which, without exaggeration, can be called the oil of the 21st century. In turbulent times, intangible investments show greater resilience compared to tangible ones.
A recent study by the European Investment Bank illustrates this thesis with cases from the global financial crisis and the Covid-19 pandemic, which hit the global economy hard. While there was a sharp decline in investments in machinery and equipment, intangible investments (particularly in the R&D sector) continued to grow steadily.
The world is currently experiencing another crisis. While the international community tries to adapt to increasingly unpredictable geopolitical circumstances that change almost daily, my country is at the epicenter of this storm, triggered by Russia’s full-scale military aggression against Ukraine. But even still, we can confidently state that our innovators, developers and entrepreneurs have not only adapted to the extremely difficult realities of war but also used them as a driver for growth and development. In particular, Ukraine is now experiencing a boom in military and defense tech startups. First and foremost, this is about our survival and national security, and these sectors attract the most foreign investment.
Growth Despite Everything: Working To Fill The Gaps
The general figures speak for themselves: During the first year and a half of the full-scale war, practically no Ukrainian startups closed, while over 80 new projects were launched. According to the “Global Startup Ecosystem Index” by StartupBlink, out of 100 countries, Ukraine rose to the 46th position in 2024. However, the investments capable of driving our technological leap are still not enough. And one of the obstacles to their growth is the insufficient level of IPR protection, which is considered a significant investment risk.
A key role in these shortcomings is played by the full-scale war, which, in particular, causes a shortage of qualified specialists in the IP field. However, many problems with IP protection also arise due to internal factors, the most important of which is the low level of IP culture—hence, limited awareness of developers about the value of intangible assets and the absence of a clear IP strategy at the early stages of the innovation process.
Startups often postpone IP registration and auditing, and also neglect qualified legal support, which leads to difficulties when expanding sales markets and attracting foreign investors. To change this, what is needed first and foremost is continuous educational activity and deeper cooperation between government bodies, businesses and research institutions. The Ukrainian IP Office is actively working in these areas, and I am convinced that such challenges are faced by most IP offices around the world.
A Reliable IP System As A Foundation For Win-Win Cooperation
It is important for us to emphasize the protection of the developer’s IPR because a protected intellectual property portfolio significantly increases the attractiveness of a startup to investors. This portfolio may include patents (granting exclusive rights to use, sell and license the invention), trademarks (providing intangible value through brand recognition and customer loyalty), copyrights (covering scientific and other works, software code, etc.) and trade secrets (which can protect know-how and business information).
Reliable legal protection of these components reduces operational risks and ensures a competitive advantage in the market. It not only protects against product copying by competitors but also significantly lowers the risk of lawsuits for violating third-party IPR. Therefore, by building an IP management strategy and protecting IPR, companies automatically protect their investors’ interests. Finally, mutually beneficial cooperation and protection of international investors are impossible without clear rules of the game. That is why harmonizing legislation in the IP sphere must be a strategic priority for all parties involved.
For us, this is intended not just to adapt our norms to European standards and simplify IP registration processes, but, most importantly, to integrate Ukraine into a single legal and economic space with clear and transparent mechanisms. And it is precisely in the IP sphere where we have achieved a high level of progress—both in implementing the provisions of the EU-Ukraine Association Agreement and in the context of EU integration progress within the actual negotiation framework, as demonstrated by the results of the screening of the “Intellectual Property Law” chapter in December 2024. This opens up new opportunities for international cooperation, guaranteeing legal certainty for investors.
Ultimately, a strong intellectual property system is a strategic imperative for any country striving for sustainable growth, global partnerships and investor trust. The ability to clearly define, protect and commercialize intangible assets is the main prerequisite for turning ideas into economic value—both in Ukraine and in any other country around the world.
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