Author(s)
Gilles Saint-Paul
Source
CEPR Discussion Paper No. 4713; World Economics, Vol. 6, No. 3, 2005, pp.175 - 196
Summary
This paper asks if developing countries benefit from patents and copyrights.
Policy Relevance
Nations lacking strong intellectual (IP) rights will attract less investment. Weak IP rights reduce innovation worldwide. The best strategy for developing nations is to seek lower trade barriers in exchange for stronger IP.
Main Points
- Some argue that developing nations should avoid intellectual property (IP) regimes and just copy innovations from other countries.
- Patented goods like medicines can be copied and sold cheaply.
- Alternatives to IP can promote economic growth locally.
- Historically, the United States allowed copying of other nation’s inventions.
- These arguments are misguided. Firms will invest more in countries with strong intellectual property, leaving developing nations with weak IP at a disadvantage.
- Innovators in a nation with weak intellectual property might leave valuable local opportunities untouched and go elsewhere.
- Developed countries might avoid exporting or licensing to nations with weak IP.
- Developing nations’ governments should not intervene to protect the high-tech sector, including open source software.
