Economics of Intellectual Property in the Context of a Shifting Innovation Paradigm: A Review from the Perspective of Developing Countries

• Published in: Global economic review Vol. 42; no. 1; pp. 29 - 42
• Main Authors: Lee, Keun, Kim, Jinyoung, Oh, Junbyoung, Park, Kyoo-ho
• Format: Journal Article
• Language: English
• Published: Abingdon Taylor & Francis Group 01.03.2013; Taylor & Francis Ltd; 동서문제연구원
• Subjects: Companies; Developing Countries; Economic Development; Economic growth; Enterprises; Human resources; Incentives; Innovation; Innovations; Intellectual property; Intellectual property rights; Intervention; Inventor Mobility; IP (intellectual property); Knowledge Utilization; LDCs; Licences; Licensing; Litigation; Mobility; Patent Litigation; Property rights; Public policy; Technological change; 경제학
• ISSN: 1226-508X; 1744-3873
• DOI: 10.1080/1226508X.2013.769801

This paper discusses how the evolving nature of innovation has affected the way Intellectual Property Right (IPR) regime has affected economic growth in developing countries. Focusing more on utilization rather than protection of IPs for human society, it argues that the linkages from protection of knowledge to innovation incentives should be given more priority at the later stage of economic development when developing countries reach a certain level of technological capabilities. Despite the loose or open linkage between IP protection and economic growth, strong IP enforcement can still seriously decrease the catching-up probability of latecomer firms, especially small and medium-sized enterprises (SMEs). The lawsuits by patent trolls may be more damaging because cross-licensing or patent pooling strategy is not available at all as a settlement option. Thus, latecomer firms are facing heavier challenges than before, especially the SMEs with limited financial and human resources. In such circumstance, there can be a case for the active role of public policies and interventions.