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Now showing 1 - 10 of 59
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Why some countries develop (while others stay poor): The role of "capabilities" in development

2006-10 , Fagerberg, Jan , Srholec, Martin

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Harmonization of Patent Rules and Regulations and its Plausible Implications in Developing Countries: A Case Study of India

2006-10 , Bhattacharya, Sujit

Historically it has been the privilege of each country to define rules and regulations of its patent system, scope of patenting, exceptions and enforcement mechanism. This had resulted in sharp differences in patenting provisions in different countries; particularly the differences were substantial between developed and developing countries. Majority of the developing countries like India had limited term of patenting, product patents were not allowed in some sectors (mainly ‘pharmaceutical’), etc and enforcement mechanism was not so strong. This type of patent system was in force in developing primarily to enable industries in these countries to catch up with their counterparts in the industrialised economies. The multilateral trade agreement, the WTO (World Trade Organisation) enacted in 1994, enforced new rules and regulations for trade between countries. It was for the first time through the TRIPS (Trade Related Intellectual Property Rights) agreement in the WTO, protection and safeguard of intellectual property rights was introduced in trade between countries. International trade is increasingly becoming technology driven. Share of high technology goods in export is becoming important component of international trade particularly by developed countries. In this technology driven market, creation and successful translation of proprietary knowledge allow firms to be competitive. Firms have increasingly complained that there are widespread infringements of their protected technologies particularly in developing countries due to weak patent laws and inadequate enforcement mechanism. This has been the major argument for inclusion of IPR provisions in international trade agreement i.e. the Agreement establishing the World Trade Organisation (the WTO Agreement) (However, this argument has also come in for criticism as it has been argued by developing countries as well as international agencies such as the WHO, that inclusion of stringent IPR provisions can retard the growth of countries which are in different stages of development). TRIPS agreement has three broad components: (A) Goals, objectives and standards of IPR, (B) Mechanism for enforcement, (C) Specific needs of developing countries. This agreement, explicitly defined through various articles, specifies the patent provisions that member countries would have to provide in their patent law. Thus in other words it essentially leads to the creation of a harmonised patent system i.e. to a large extent creating similar patent rules and regulations in member countries. The present article by taking the case of India, a country in transition and a member of the WTO, examines the changes that were undertaken by it in its patent provisions to comply with the TRIPS agreement. The article also underscores the plausible implications of these changes. In a broad sense the situation in India i.e. the patent system in the country and the effect of TRIPS agreement would be similar to other developing economies. The paper is articulated in five main sections. Section 2 looks at Indian Patent System) for patenting in India and the major deviations from the TRIPS agreement. Section 3 covers changes that were required in the Indian Patent Act to comply with the TRIPS agreement. Section 4 discusses the plausible implications of the amendments. Section 5 examines India’s preparedness by examining patenting trends of Indian firms. This section also covers impact of India joining Patent Cooperation Treaty (PCT) by observing patent filing by Indian firms through the PCT route as well as foreign patents that are entering India through this route. Section 6 highlights the main findings that emerge from this study and their implications.

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Intellectual Property Rights Regime and Creation of Innovation Based Enterprises in India

2006-10 , Basant, Rakesh

In recent years, the Indian government has undertaken significant modifications in the Intellectual Property (IP) regime of the country. Some of the key elements of the modified policy having major implications for several sectors in the economy, especially the pharmaceutical, chemical, biotechnology and information technology related sectors. Given the changes in the IP regime, the competitive landscape of many of these sectors is undergoing a fundamental change in India. This has led to a realignment of business strategies by firms in these sectors in order to face the challenges thrown up by the changing regime, as companies which enjoyed protection under Indian IP laws will have to adapt to India's accession to WTO (TRIPS) norms in 2005. At the same time, globalization of the Indian economy is opening up new opportunities for firms in the country and they will need to build strategies to exploit the emerging opportunities. IP regimes in a country play an important role in fostering the direction and the quality of entrepreneurial innovation across all sectors of the economy. For example, an IP law that fosters incremental innovation can allow small businesses to benefit by affording protection to small incremental improvements on existing intellectual property that can in turn be used by owners of the IP to move up the technological value chain. In addition, the IPR framework directly affects the ability of entrepreneurs to take advantage of commercial opportunities that require the existence of a suitable IP regime before commercial/service agreements can be reached with potential clients. Such market creating potential of the IPR framework can also impinge on the ability of small entrepreneurs to enter into IP intensive activities as subcontractors and licensees. While India has made its IP regime TRIPS compatible, it is not entirely clear if the new regime would facilitate the participation of Indian companies in the knowledge intensive global production and R&D networks and if it is appropriate for an economy that is expected to grow rapidly enlarging the demand for a variety of products and services. This paper explores these issues in the context of IT-electronics and pharmaceuticals- biotechnology sectors. It is built on the premise that ceteris paribus participation of Indian firms in IP creation and participation in knowledge intensive activities is desirable. If changes in technology and global industrial structure are creating opportunities for such participation, IP policies should positively discriminate in favour of such participation. Similarly, if the domestic market for knowledge intensive activities is growing rapidly, policy makers should explore if tinkering with IP policies can facilitate the participation of local firms in this market. The paper argues that such possibilities exist and some pro-active changes in IP policies are desirable. The rest of the paper is divided into four sections. Section 2 summarizes the emerging opportunities in the pharmaceutical-biotech sector and explores areas where Indian firms can potentially participate. The next section undertakes a similar analysis for the IT-electronics sector. Section 4 reviews the existing IPR laws to evaluate if these laws can potentially constrain the exploitation of the emerging opportunities in these sectors by Indian firms. The final section provides some concluding remarks.

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From “Nuts & Bolts” to “Bits & Bytes”- The Evolution of Taiwan ICT in a Global Knowledge-based Economy

2006-10 , Lee, Ting-Lin

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Knowledge Capital and Globalisation: Towards A New Conceptual Model

2006-10 , Baskaran, Angathevar , Boden, Rebecca

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India and China: Changing Patterns of Comparative Advantage?

2006-10 , Veeramani, C.

The present paper attempts a comparative analysis of the changing patterns of exports and specialization in India and China since 1980. Drawing upon the Chinese experience, the study throws some light on what needs to be done for accelerating India’s exports. The analysis shows that the fear of “Chinese invasion” of India’s export markets is only a popular myth. On a more general level, the analysis provides some insights into the patterns of resource reallocation under trade liberalization and its implications for the cost of adjustments. The analysis excludes the service sector exports and uses data on merchandise exports at the 3-digit level of SITC during the period 1980-2003. The data are taken from the various issues of the Handbook of Statistics brought out by UNCTAD. The rest of the paper is structured as follows. A brief overview of trade policy changes in India and China is provided in Section II. The impact of the policy changes on aggregate exports in both the countries is briefly discussed in Section III. The changing patterns of exports and comparative advantages in the two countries are analyzed in Section IV. Some concluding remarks and implications of the findings for policy are provided in Section V.

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Breaking the Fence: Patent Rights and Biomedical Innovation in “Technology Followers”

2006-10 , Sampath, Padmashree Gehl

The impact of patent protection on biomedical innovation has been a controversial issue. Although a “medical anti-commons” has been predicted due to a proliferation of patents on upstream technologies, evidence to test these concerns is only now emerging. However, most industrial surveys that shed light on this issue are mainly from developed countries, making it very difficult to predict the impact of patenting on biomedical innovation in developing and least developed countries. This paper develops a framework of analysis for the impact of patent rights on biomedical innovation in “technology follower” developing countries. Based on the framework developed in the paper, empirical data collected in an industry-level survey of the Indian pharmaceutical industry between November 2004 and January 2005 is used to analyze the impact of patent rights as recognized under the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS Agreement) on biomedical innovation in technology followers.

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Approach for Analyzing Technological Capabilities in Latecomer Software Companies

2006-10 , Rousseva, Rossitza

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Secondary Innovation: The Experience of Chinese Enterprises in Learning, Innovation and Capability Building

2006-10 , Wu, Xiaobo , Ma, Rufei , Xu, Guannan

Nowadays enterprises have played an important role in China’s economic development and increasingly become the main force of China’s growing research and innovation activities. Different from some related work on developing countries’ innovation policy and strategy, the evolutionary model of secondary innovation, based on Chinese enterprises’ innovation practice, highlights the significant role of enterprises in systems of capability building and innovation, and opens the black box to uncover the dynamic process of enterprises’ organizational learning, knowledge accumulation and capability building. Moreover, since enterprises are considered as open systems and one important job of organizational learning is to address rapidly changing environments, interactions between systems of innovation inside and outside the enterprises are also highlighted in the model. In a word, the secondary innovation model provides a useful analytical framework for better understanding the micro-level systems of learning, innovation and capability building in developing countries.

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Performance of Foreign Multinationals and Domestic Companies in India Since Liberalisation: A Comparative Study

2006-10 , Manikandan, A.D

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