The International Centre for Trade and Sustainable Development National Patent and Innovation Strategies in Developing Countries and LDCs Ahmed AbdeL Latif

The International Centre for Trade and Sustainable Development

National Patent and Innovation Strategies in Developing Countries and LDCs

Ahmed AbdeL LatifICTSD

Second WIPO South-South Cooperation Meeting

6 May 2013


IPRs, Technology Transfer and Innovation: Article 7 of TRIPS: Objectives

• Protection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and to the transfer and dissemination of technology.


International Technology Transfer and Innovation (ITT): Absorptive Capacity


Technology Transfer tomiddle income countries

Exposure to foreign technologies (FDI, trade)

Absorptive capacity

Spillovers for the domestic economy

Efficiency of the economy


Technology Transfer to LDCs: PPPs

(Foray, ICTSD, 2009)

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.

Public, philanthropic donors

Private firm holding the technology

Local entrepreneur and beyond

Search and incentive

Demand pull,incentive


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.


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 Members in order to enable them to create a sound and viable technological base.


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


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

Country Ranking

Mauritius 49

South Africa 54

Tunisia 59

Namibia 73

Egypt 78

Botswana 85

Morocco 88

Ghana 92

Kenya 96

Senegal 97

Sudan 141


Research and Development (%of GDP)

Source : World Bank

East Asia & Pacific 1.47% 2008

Euro area 2.09% 2009European Union 2.04% 2009

Europe & Central Asia

0.96% 2009

Latin America & Caribbean

0.65% 2007

OECD members 2.45% 2008

South Asia 0.75% 2007Sub-Saharan Africa 0.58% 2007

World 2.14% 2008


Promoting Innovation :The Role of Patents

Patents have an important role in promoting innovation

but do all Patents = Innovation ?


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


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?


The role of open innovation

•Human genome project

•Open source drug discovery

•Greenxchange platform for green technologies

•Cambia: open innovation in agriculture

•Prizes


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


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


Innovation to address local needs


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


Different approaches to innovation

• China: Indigenous Innovation

• India: Frugal/Inclusive Innovation

• How can developing countries benefit frofrom each others experiences in this area?


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”.


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 sector requires 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


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The International Centre for Trade and Sustainable Development National Patent and Innovation Strategies in Developing Countries and LDCs Ahmed AbdeL Latif