For more on the early history of intellectual property rights in the u. A survey of major issues 5 introduction from a broad sustainable development viewpoint, intellectual property ip might relate to a number of aspects of a countrys social and economic development. The protection of the intellectual property rights ipr has been an integral component of economic growth both in developed and developing countries. Technological progress is a critical driver of economic growth, and one of the key determinants of technological change is the incentives we provide technology developers. Intellectual property rights iprs affect international trade flows when. They have some resemblance to ownership rights over physical property or land.
It also draws on several contributions made to an electronic conference titled intellectual property rights and economic development organized by the world banks technet network in collaboration with the economic development institute of the world bank and the world trade organization in april and may 1998. An efficient and equitable intellectual property system can help all countries to realize intellectual property s potential as a catalyst for economic development and social and cultural wellbeing. The relationship between the strength of a countrys intellectual property rights iprs regime and its rate of growth is theoretically ambiguous, reflecting the variety of channels through which technology can be acquired and their differing importance at different levels of development. In principle, when a country strengthens its ipr protection, it must strike a. The relationship between intellectual property rights and economic development has attracted a great deal of attention from economists, but their conclusions have been ambivalent and offer little definitive guidance for policy makers. Therefore, what is the ideal method to spur innovation. Nowhere is this more evident than in the area of intellectual property rights iprs. Economic analysis of iprs is utilitarian, asking whether the benefits of any system outweigh its costs, both in static and dynamic terms. Ipr and the economic development models and economic studies have obvious conclusions about the role of intellectual property rights on economic development. Appendix a the level of development, measured by per capita gdp, is represented by theta. Maskus the global intellectual property system currently is undergoing substantial expansion and modernization, largely through implementation of the agreement on traderelated aspects of intellectual property rights trips.
This paper attempts to analyse the intellectual property rights from an economic perspective. From development perspectives, recent literature has shifted attention. The evidence suggests that intellectual property protection is a significant determinant of economic. Intellectual property rights, multinational firms and. Agreement on traderelated intellectual property rights trips and the development of tripsplus standards.
There is the need to update our laws and incorporate the protection of ip rights on smell and sound as already practiced in the major world economies. The analysis focuses on effects of iprs on growth using a quantitative index of iprs. Integrating intellectual property rights and development policy 11 introduction intellectual property is a form of knowledge which societies have decided can be assigned specific property rights. Intellectual property rights, copyright and development. Governments and scholars have for some time grappled with the question of whether there is a connection between intellectual property ip and economic development, and if so, how strong the link is. Traditional economic policies matter, such as policies regarding education, research and development, capital investment, essential services such as water and sanitation. This paper studies the relationship between intellectual property rights iprs and economic growth for a cross. The new opportunities for the intellectual property rights. Based on the perspective of trade secrets protection economic and trade disputes between china and the united states have evolved since march 2018.
The analysis focuses on esfects of iprs on growth using a quantitative index of iprs. To address some of the issues concerning iprs, this paper defines what they are and attempts to evaluate the relationship between the protection of intellectual property and economic activity in. These exclusive rights allow owners of intellectual property to benefit from the property they have created, providing a financial incentive for the creation of an investment in intellectual property, and, in case of patents, pay associated research and development costs. Intellectual property rights and economic growth by rod. Traditional literature on the role of intellectual property rights iprs in innovation and economic growth tends to focus on the strength of ipr protection, given the tradeoffs between innovation and diffusion. As will become clearer later in the paper, the role of intellectual property rights ipr in economic development has always been a controversial issue. Innovation, economic development and intellectual property rights. At the beginning, intellectual property was protected because of the risks for rulers to lose power. Development of countries with economies in transition. This research seeks to know whethertightening intellectual property protection rights in a typical developing country such as nigeria can indeed promote innovation, attract foreign direct investment and invariably spur economic growth.
First, i argue that the discourse suffers from a number of theoretical problems its neglect of the causality running from development to institutions, its inability to see the impossibility of a free market, and its belief that the freest market and the strongest protection of private property rights are best for economic development. Maskus 2000 mentions the positive and negative effects that intellectual property rights can have in the development processes of countries and concludes that the modern systems of intellectual. Intellectual property rights in the global creative economy 5 much of the worlds intellectual property ip is embodied in music, movies, videos, books, articles, illustrations and other creative content. Legislative reform in the field of intellectual property, and the modernization of the ip infrastructures of many countries has raised expectations on how the ip system can be used to. Economic literature is equivocal, with some studies concluding. Pdf role of intellectual property protection on economic.
Todays global intellectual property regimes have been strongly affected by the historical evolution of ipr in the united states and in the advanced industrialised countries over the last century. This is where intellectual property rights iprs matter for economic development. But knowledge is much more than intellectual property. Innovation, intellectual property, and economic growth. The new opportunities for the intellectual property rights under the economic and trade agreement between the government of p. Jul 12, 2009 for proper economic, social and cultural development to occur, intellectual property must play a fundamental role.
The role of intellectual property rights in economic. Intellectual property rights and economic development before considering how iprs influence economic activity and growth, consider their intended roles in the economy. And do intellectual property rights help or hurt innovation and growth. Intellectual property law awards to inventors, artists, and institutions certain exclusive rights to produce, copy, distribute, and license goods and technologies within a country. Intellectual property rights and economic development. In addition to other factors, intellectual property rights. By influencing the incentives to innovate, intellectual property rights protection may affect economic growth in important ways. By william daley, the fletcher school of law and diplomacy, tufts university introduction innovation is largely considered to be the principle catalyst of longterm economic growth. We then examine an extensive set of case studies in which the current regime has proved. Intellectual property rights remain a significant tool for policymakers and, when employed correctly, have the power to engender innovation and economic development. We have looked about us to see what nations are the greatest, so that we can be like them. Pdf intellectual property rights, trade, and economic.
Detractors of trips highlight the negative effects of strengthening intellectual property rights on economic development in developing countries, and the unfair gains for developed countries. Jan 08, 2020 report a continental strategy for economic diversification through the afcfta and intellectual property rights vera songwe wednesday, january 8, 2020. This chapter examines how intellectual property differs from other, more tangible, forms of. Models and economic studies have obvious conclusions about the role of intellectual property rights on. The role of intellectual property in economic, social and cultural development the following chapters will first discuss certain premises and truisms about the nature and importance of intellectual property and then deal with economic aspects, such as, investment correlation and effects of piracy. As it will become clearer later in this paper, the role of intellectual property rights henceforth iprs in economic development has always been a controversial issue. Patents and other intellectual property rights are an important factor for the wealth of nations maskus 2000.
Innovation, economic development, and intellectual property rights. Intellectual property rights protection international technology transfer northsouth trade multinational. Uniquely combining microeconomics, macroeconomics, and theory with empirical analysis drawn from the united states and europe, this book introduces graduate students and advanced undergraduates to the complex process of innovation. Pdf intellectual property rights and economic development. A patent provides the right to exclude others from profiting from a patented invention for a certain period of time. Historical lessons and emerging issues is published by. Aug 30, 2019 intellectual property, among other legal instruments, is used to promote economic development. The bottom line is that decades of study and scores of researchers demonstrate that a robust intellectual property rights regime is beneficial to economic development lybecker 2014. An important question for many countries is whether stricter enforcement of intellectual property laws is a good strategy for economic growth. Appropriate intellectual property protection and economic. A continental strategy for economic diversification through. Economic research over the past two centuries confirms the founders wisdom regarding the importance of intellectual property. First, national states only protected their own economic interests, therefore.
Intellectual property rights, technology and economic. This paper addresses the role of intellectual property rights iprs in the economic growth of countries at different levels of economic development. Chapter 10 the role of intellectual property in the economy. This paper is the updated version of the guidelines for the use of ip rights for the economic. Patents, growth, and growing pains in 1900, korekiyo takahashi, the first president of the japanese patent office, announced during a visit to the us patent office. Chapter 3 the role of intellectual property in development. These studies were initiated by the department for transition and developed countries of the world intellectual property organization hereinafter referred to as wipo. Protection of intellectual property ip, through patents, trademarks and s, is critical to ensuring that firms pursue innovation. In the postdoha period, the commission on intellectual property rights cipr set up by the department for international development dfid, uk with john barton as chair in its report integrating intellectual property rights and development policy in 2002 observed that poverty reduction in developing countries will be hindered if intellectual. Intellectual property and the knowledge economy ippr 5 the economic rationale for intellectual property the in 2003, the department for trade and industry dti published a report competing in the global economy. The impact of intellectual property theft on the economy. Intellectual property rights, technology and economic development. Thanks to the ongoing revolution in digital devices and services, that content is being created, moved.
Intellectual property rights and economic development english abstract. Over the past decade, the production of intellectual property rights iprs has undergone tremendous changesfostered on the one hand, by a widening of the range of products and technologies covered by proprietary rights and on the other hand, by policy. Variations in patent rights explain the innovation and economic growth of highincome economies, while variations in utility model laws explain those of middletolow income economies, controlling for other factors. Intellectual property rights protection and economic. Survey on reforms towards ipbased economic development 2. Diverse forms of intellectual property rights, innovations. Does intellectual property lead to economic growth. As stressed by keith maskus 2000, the issue is complex, the effectiveness of intellectual property rights in the development and growth depends on the circumstances of each country. Intellectual property rights and sustainable development. Pdf neoclassical growth theory emphasises the role of intellectual property rights iprs in the economic growth process through different channels. In particular, we show that the current global regime of intellectual property rights is inadequate in serving the purpose of economic development and welfare. Over the past decade, the production of intellectual property rights iprs has undergone tremendous changesfostered on the one hand, by a widening of the range of products and technologies covered by proprietary rights and on the other hand, by policy shifts that have initiated a move towards globally harmonized standards of protection. Existence of an equilibrium for a competitive economy intellectual property rights and economic development the economics of intellectual property. Maskus 12 intellectual property rights and economic development in china 295 keith e.
It is our contention that intellectual property is a key to technological and economic development,1 even for developing countries. As stressed by keith maskus 2000, the issue is complex, the effectiveness of intellectual. This chapter explores the normative dimensions of economic development such as growth in gross national product, technological change, and social indicators like health, literacy, and wellbeing. Legal and economic challenges for development initiative for policy dialogue kindle edition by mario cimoli, giovanni dosi, keith e. Eclac project documents collection intellectual property rights and sustainable development. For proper economic, social and cultural development to occur, intellectual property must play a fundamental role. The protection of intellectual property rights has been considered as an engine of economic growth in developed and developing economies. The role of intellectual property rights in economic growth. Primo braga carsten fink claudia paz sepulveda public disclosure authorized public disclosure authorized public disclosure authorized public disclosure authorized. However, the debate surrounding it has become even more heated after the traderelated intellectual property rights trips agreement.
Role of intellectual property protection on economic growth. They could control and censor printing production due to the so called printing privilege. Claudia paz sepulveda is a consultant in the human. Highlights this paper compares the roles of patent rights and utility model laws in the economic growth of countries at different levels of development. This chapter examines the role of intellectual property rights in economic growth, utilizing crosscountry data on patent protection, trade regime, and countryspecific characteristics. The paper starts with introducing the interrelation between ipr and economics. With the beginning of the british industrial revolution modern intellectual property rights became necessary. Impact of the intellectual property system on economic. In 1900, korekiyo takahashi, the first president of the japanese. Appropriate intellectual property protection and economic growth in. Intellectual property rights and economic development carlos a.
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