Why legal expertise is the next innovation ceiling

Only 29% of European startups have secured an IP right, according to a 2023 joint study by the European Union Intellectual Property Office and the European Patent Office. The high cost, slowness, and often last-minute nature of accessing legal expertise makes it difficult for many startups to invest in quality support. This leaves founders struggling to navigate crucial legal processes independently or altogether, with potentially dire consequences for both the startups and European innovation as a whole.

By ensuring affordable and streamlined access to legal expertise, European innovation stands to gain significantly. AI-native services offer a promising solution, combining purpose-built technology with genuine expertise to streamline processes and cut costs, while maintaining necessary oversight. In Europe, the regulatory burden is immense, with 100 tech-focused laws and over 270 regulators across all member states.

This makes it difficult for smaller, innovative companies to comply, often forcing them to relocate or forgo innovation altogether. AI can help bridge the gap in legal expertise, but it should not replace the need for human oversight. The best approach is to protect intellectual property early on, before any disputes arise. Failure to do so could result in substantial financial losses and limited access to crucial markets, as seen with Bird, a prominent Dutch tech startup, which announced plans to relocate its operations out of Europe due to the high cost and complexity of complying with European regulations.