The International Centre for Trade and Sustainable Development National Patent and Innovation Strategies in Developing Countries and LDCs Ahmed AbdeL Latif ICTSD Second WIPO South-South Cooperation Meeting 6 May 2013

The International Centre for Trade and Sustainable Development 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.

The International Centre for Trade and Sustainable Development International Technology Transfer and Innovation (ITT): Absorptive Capacity ITT Technology Supplier Non- Market Market Technology Recipient Absorptive Capacity

The International Centre for Trade and Sustainable Development Technology Transfer to middle income countries Exposure to foreign technologies (FDI, trade) Absorptive capacity Spillovers for the domestic economy Efficiency of the economy

The International Centre for Trade and Sustainable Development 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

The International Centre for Trade and Sustainable Development 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.

The International Centre for Trade and Sustainable Development 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.

The International Centre for Trade and Sustainable Development Implementation of TRIPS Article 66.2 (1) (Moon, ICTSD, 2011)

The International Centre for Trade and Sustainable Development Ranking of select African Countries in Global Innovation Index (2012) CountryRanking Mauritius49 South Africa54 Tunisia59 Namibia73 Egypt78 Botswana85 Morocco88 Ghana92 Kenya96 Senegal97 Sudan141

The International Centre for Trade and Sustainable Development Research and Development (%of GDP) Source : World Bank East Asia & Pacific1.47% 2008 Euro area2.09% 2009 European Union2.04% 2009 Europe & Central Asia 0.96%2009 Latin America & Caribbean 0.65% 2007 OECD members2.45% 2008 South Asia0.75% 2007 Sub-Saharan Africa0.58% 2007 World2.14% 2008

The International Centre for Trade and Sustainable Development Promoting Innovation : The Role of Patents Patents have an important role in promoting innovation but do all Patents = Innovation ?

The International Centre for Trade and Sustainable Development 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

The International Centre for Trade and Sustainable Development 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 International Centre for Trade and Sustainable Development The role of open innovation Human genome project Open source drug discovery Greenxchange platform for green technologies Cambia: open innovation in agriculture Prizes

The International Centre for Trade and Sustainable Development 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

The International Centre for Trade and Sustainable Development Innovation not just about R&D: the case of Nokia

The International Centre for Trade and Sustainable Development Innovation to address local needs

The International Centre for Trade and Sustainable Development 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

The International Centre for Trade and Sustainable Development Different approaches to innovation China: Indigenous Innovation India: Frugal/Inclusive Innovation How can developing countries benefit fro from each others experiences in this area?

The International Centre for Trade and Sustainable Development 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.

The International Centre for Trade and Sustainable Development 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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