Perspectives on Intellectual Property Rights and Economic Development

1. Perspectives on Intellectual Property Rights and Economic Development Walter G. Park Dept. of Economics American University Program on Information Justice and Intellectual Property Rights, American University, Washington College of Law 16th October 2012

2. Theory (diverse) • Empirical Research (varied) • IPRs can have a positive influence on innovation/inward tech transfer in developed countries, and inward tech transfer in developing countries. • Response of developing country innovation to IPR reforms is mixed. • Allred and Park (2007), Lerner (2002), Kyle and McGahan (2012), Maskus (2012), Schneider (2005), and Watson-Phalin (2011) A Brief Tour of Recent Research

3. Patent Priority Filings (by Inventor Country) Global Distribution: Innovation Source: PATSTAT

4. Top 10: Patents Granted in the U.S. Source: USPTO.gov

5. Patent Priority Filings Global Distribution: Innovation * Excluding China, South Korea, and Taiwan

6. Business Enterprise R&D Performed Global Distribution: Innovation * Excluding China, South Korea, and Taiwan Source: UNESCO

7. Global Distribution: Technology Transfer* * Volumes measured in terms of sums of Export-Import Flows or Outward-Inward Stocks. ** Excluding China, South Korea, and Taiwan Source: UNCTAD

8. Lags • Role of Imitative and Adaptive Innovation • Cf. Kim, Lee, Park, and Choo (2011) Research Policy • Barriers to Knowledge Mobility • vs. Open Innovation Explanations?

9. 1400 - 1600 Source: S. Johnson (2010) Where Good Ideas come from: The Natural History of Innovations, Riverhead Count of Breakthrough Ideas and Innovations 1800 - present

10. Lags • Role of Imitative and Adaptive Innovation • Cf. Kim, Lee, Park, and Choo (2011) Research Policy • Barriers to Knowledge Mobility • vs. Open Innovation • Weak compliance with Article 66.2 • Re: Least Developed Countries • Cf. Moon (2008), Barder, Park, and Reynolds (2012) Explanations?

11. Article 66.2 • “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 Members in order to enable them to create a sound and viable technological base.” • Article 67 • “In order to facilitate the implementation of this Agreement, developed country Members shall provide, on request and on mutually agreed terms and conditions, technical and financial cooperation in favor of developing and least-developed country Members. Such cooperation shall include assistance in the preparation of laws and regulations on … intellectual property rights ..., and shall include support regarding the establishment … of domestic offices and agencies relevant to these matters, including the training of personnel.” TRIPS Obligations

12. Having regardto Article 66.2 of the Agreement on Trade-Related Aspects of Intellectual Property Rights (the "TRIPS Agreement"); : : • With a view to putting in place a mechanism for ensuring the monitoring and full implementation of the obligations in Article 66.2, as called for by that Decision; : : • Developed country Members shall submit annually reports on actions taken or planned in pursuance of their commitments under Article 66.2. To this end, they shall provide new detailed reports every third year and, in the intervening years, provide updates to their most recent reports. Decision of the Council for TRIPS of 19 February 2003

15. Recap • Evidence: Impact of IPRs on Developing Country Innovation is not conclusive. • Expansions in innovation & technology transfer are concentrated among a few developing economies • Experience suggests • Re: IPRs and Innovation • Need more openness and less exclusivity • Foster adaptive and incremental innovation (as stepping stones) • Re: IPRs and Technology Transfer • Need more substantive transfers and policies, and better compliance on the part of Developed Economies