National Patent and Innovation Strategies in Developing Countries and LDCs Ahmed AbdeL Latif ICTSD

1. National Patent and Innovation Strategies in Developing Countries and LDCs Ahmed AbdeL Latif ICTSD Second WIPO South-South Cooperation Meeting 6 May 2013

2. IPRs, Technology Transfer and Innovation: Article 7 of TRIPS: Objectives • Protection and enforcementof intellectual property rightsshould contribute to the promotion of technological innovationandto the transfer and dissemination of technology.

3. International Technology Transfer and Innovation (ITT): Absorptive Capacity

4. Exposure to foreign technologies (FDI, trade) Efficiency of the economy Absorptive capacity Spillovers for the domestic economy Technology Transfer tomiddle income countries

5. Public, philanthropic donors Private firm holding the technology Search and incentive PPP: Knows the local demand for technologies; Finds a technology holder; Structures the incentives; Contains costs; Supervises the various phases; Monitors contract obligations of each party; Manages IPR issues. Demand pull, incentive Local entrepreneur and beyond Technology Transfer to LDCs: PPPs (Foray, ICTSD, 2009)

6. Transition periods for LDCs:TRIPS Article 66.1 • In view of the special needs and requirements of least-developed country Members, their economic, financial and administrative constraints, and their need for flexibility to create a viable technological base, such Members shall not be required to apply the provisions of this Agreement, other than Articles 3, 4 and 5, for a period of 10 years from the date of application as defined under paragraph 1 of Article 65. The Council for TRIPS shall, upon duly motivated request by a least-developed country Member, accord extensions of this period.

7. Article 66.2: TT incentives to Least-Developed Countries • Developed country Members shall provide incentives to enterprises and institutions in their territories for the purpose of promoting and encouraging technology transfer to least-developed country Membersin order to enable them to create a sound and viable technological base.

8. Implementation of TRIPS Article 66.2 (1)(Moon, ICTSD, 2011)

9. Ranking of select African Countries in Global Innovation Index (2012)

10. Research and Development (%of GDP) • Source : World Bank

11. Promoting Innovation :The Role of Patents • Patents have an important role in • promoting innovation • but do all Patents = Innovation ?

12. Vibrant debate about the patent system and innovation • Trivial patents • Patents on human genes (Myriad Case) and patents on software? • Patent trolls • Patent thickets • Patent litigation • Patent Quality : novelty, inventive step, industrial applicability/usefulness

13. Patent counts as an indicator of innovation? • In 2012, China ranked first in number of patent filings in the world: • - SIPO received 526, 582 patent filings while USPTO received 503,582 patent filings (Source, WIPO). • Does this mean that China is more ‘innovative’ than the United States?

14. The role of open innovation • Human genome project • Open source drug discovery • Greenxchange platform for green technologies • Cambia: open innovation in agriculture • Prizes

15. Innovation not just about IP/Patents • Innovation not just about the IP/Patent system and IP laws • Innovation also about: • R&D policies and measures • Trade policy • Investment policy • Technical standards • ICT policy • Government procurement policy • Competition policy • Industrial policy

16. Innovation not just about R&D:the case of Nokia

17. Innovation to address local needs

18. Imitation can be an ingredient of innovation • “Picasso had a saying -‘good artists copy, great artists steal’ –and we have always been shameless about stealing great ideas.” • Steve Jobs by Walter Isaacson (2011), p.98

19. Different approaches to innovation • China: Indigenous Innovation • India: Frugal/Inclusive Innovation • How can developing countries benefit fro • from each others experiences in this • area?

20. TT and Innovation in Free Trade Agreements (FTAs) • EU–CARIFORUM EPA, Chapter on ‘Innovation and Intellectual Property’ (2008) • Article 132: Objectives • Promoting “the process of innovation, including eco-innovation, of enterprises located in the Parties”; “contribute to the promotion of technological innovation and to the transfer and dissemination of technology and know-how”; “encourage, develop and facilitate cooperative research and development activities in science and technology”; “encourage, develop and facilitate cooperative production and development activities in the creative industries”.

21. Conclusion:IP, innovation and technological development • IP system should be adapted to the level of technological development • Weak technological capacities = IP regime should maximize space for imitation and reverse engineering • Increase technological capacity in certain sectorrequires calibrated IP protection to that sector • Flexibilities can play an important role in technological transfer, innovation and learning (strict patentability criteria, exceptions, international exhaustion, compulsory licensing…). • Two areas where South-South cooperation and exchange of experience could be useful: • Commercialisation of publicly funded research • Use of utility models

22. THANK YOU aabdellatif@ictsd.ch Follow us on Facebook and Twitter ICTSDIP