Maximizing Access to Technology in Developing Countries

1. IPRs and access to technology-a developing country perspective Pedro Roffe UNCTAD-ICTSD WIPO-WTO Workshop, November 2003

2. Outline 1. Developing countries and access to technology 2. Challenges facing policy-makers 3. Conclusions

3. In brief • Intellectual property is a relevant factor. But, one among many. • The technology involved is also relevant. • But, a local enabling environment: skills, institutions, policies (intellectual property, competition) is a pre-requisite. • International support measures necessary

4. 1. Net importers • R&D concentrated in OECD countries, 10 countries account for • 84% global R&D • 94% of patents granted in USA • 91% of receipts of cross-border technology payments

5. New and old issue • Access to technology not a new issue • The 1970s • Policy initiatives • Challenges to conventional rules • Changing conditions and perceptions: modalities versus access

6. Direct FDI Joint ventures Alliances Licensing Trade in goods Technical services Indirect Temporal movement of persons Imitation (reverse engineering, copying) FDI spillovers (subcontracting, training) Compulsory licensing Access to technical information (patent information, books, journals) Mechanisms

7. Mechanisms to access • Direct and indirect mechanisms • Role of foreign direct investment and international firms • Relative role of intellectual property according to mechanisms and nature of technology involved

8. Role of patent information • Access to foreign technology is essentially a consensual private transaction via market mechanisms • Working requirements and non-voluntary licensing • Means of accessing foreign technology? • Patent information

9. 2. Relative importance of different factors • Mixed evidence regarding factors influencing access to technology • Advocates of strong IP protection argue that IPRs constitute a critical factor to induce international transfer of technology

10. Intellectual property factor • Countries, in different degrees, protect intellectual property, why some have better access to technology than others? • Focus of attention has been the patent system • Access could be enhanced or affected by other intellectual property disciplines

11. New technologies • Access to new technologies (biotechnology and ICT) might offer new opportunities for developing countries: leapfrogging? • Access to technology means access to technical knowledge • The opportunities and challenges of the information revolution • The Internet as a development tool

12. IP as an incentive? • Which incentives for international firms to transfer technology to developing countries? • Does the IP system provide those incentives? • The TRIPS Agreement • The case of the least-developed countries

13. 3. Conclusions • Technology transactions occur between willing partners in voluntary transactions • Regulatory systems cannot secure these conditions but could create conditions to overcome impediments • Would access be facilitated in a scenario of full compliance with higher standards of IP protection?

14. The enabling environment • Access to technology is not a simple process • Domestic enabling environment: skills, institutions, policies • Intellectual property policies: Article 7, TRIPS, Objectives • Competitive environment including competition policies

15. International support • Focus of attention in several fora including Council for TRIPS • Possible future emphasis • Preserving balanced and pro-competitive IP regimes • International cooperation in competition policies and their interface with IP • Proper use of patent information

16. Going beyond IPRs • Measures, national/international, to enhance the domestic enabling environment and support national systems of innovation • Access to wealth of available scientific and technological information • International trade and other policies that might hinder access to technology to developing countries