Positive effects of a stronger intellectual property rights regime in a developing country
By Adina Moloman
Source: Has the Shift to Stronger Intellectual Property Rights Promoted Technology Transfer, FDI, and Industrial Development? By Lee Branstetter, C. Fritz Foley and Kamal Saggi
On an article before we sow that there are many channels through which a developing country can get access to technologies. An important aspect that was left out of discussion was the regulation of this access to high technologies, which is given by the intellectual property rights established at local, national and international level.
More commonly was thought that a stronger intellectual property right reduces the accessibility of innovations in a developing country, mostly because of the high costs of protected goods.
Mexico, comparing to other developing country had made a great effort on regulating their National Patent Low at all levels, especially for Mexico Manufacturers, so the main question is: How can stronger intellectual property rights in a developing country can generate industrial development?
More recently an important school of researcher come to the conclusion based on research and observation on an important number of developing economies, that stronger intellectual property rights facilitates transfers of technology to those countries, mainly because the increase on foreign direct investment (FDI). A strong reform of patents and intellectual property rights in a emerging economy is actually encouraging multinationals corporation to invest, transfer or to deploy more and better technology in those countries, than they would in a weak intellectual property rights regime, where can incur a higher risk of imitation. So, by that it will be possible a resource reallocation from production to R & D, given at local affiliates of multinational companies.
All of this can accelerate the industrial development of a developing economy, because it can occur the diffusion of this technology to local firms, as their local suppliers. The absorption of the technology by the emerging economy can be faster or slower depending on the interest of technology owners.
Is important to mention that this result may not generalize to all countries and also are needed further empirical analyses, for concluding that this phenomenon will persist in the long run.
