1. 1 Managing IP in Knowledge-based Development International cooperation to improve framework conditions in catching-up economies Ralph Heinrich UNECE Team of Specialists on Intellectual Property Skopje, 1 April 2009

2. 2 The UN Economic Commission for Europe (ECE)

3. 3 56 member countries home to 20 percent of the world’s population including most of the developed economies, but also emerging market economies and a few low income countries

4. 4 What UNECE does  helps to implement global UN initiatives at the regional level  fosters sustainable development & economic cooperation in its region

5. 5 What UNECE does fosters sustainable development & economic cooperation in its region by … providing a multilateral forum for policy discussion and negotiations brokering and administrating international standards and conventions engaging in capacity building and technical cooperation

6. 6 UNECE’s main areas of activity Trans-border environmental issues Border-crossing transport issues Facilitation of international trade Trans-border energy issues International harmonization of statistics and Economic Cooperation and Integration

7. 7 Committee on Economic Cooperation and Integration (CECI) Established in 2006 to promote “… a policy, financial and regulatory environment conducive to economic growth, innovative development and higher competitiveness focusing mainly on countries with economies in transition”

8. 8 CECI - main areas of work promoting innovation and competitiveness public-private partnerships entrepreneurship Financing Innovation and Intellectual Property Rights

9. 9 The Team of Specialists on Intellectual Property (TOS-IP) provides a forum for the exchange of experiences collects/ disseminates good practices and policy recommendations engages in capacity building and policy advice at national & sub-regional level

10. 10 … through its network of experts representing –government ministries and agencies –the business community –international organizations and –academic institutions and its inter-governmental process

11. 11 TOS-IP constituted in Nov 06 currently ~ 120 experts from ~35 countries

12. 12 TOS-IP’s mandate helps to … “build up national innovation systems commercialize intellectual property improve the investment environment in creative, innovative and high technology industries … among others through effective enforcement of intellectual property rights”

13. 13 ToS-IPs mandate Hence commercialization & enforcem’t as 2 sides of 1 coin w/o enforcem’t, IPRs have no commercial value w/o commercialization, no incentive to enforce

14. 14 Economic Role of IPRs Well-designed IPRs:  Provide incentives for innovation  Underpin markets for intellectual assets  Encourage disclosure & diffusion of knowledge

15. 15 The International Dimension Innovation THE key driver of economic growth reduced costs of creating & transmitting knowledge … … including across borders faster innovation & closer economic integration

16. 16 Innovation, Integration & Economic Development globalization of int’l supply chains & production networks … and increasingly internationalization of R&D increasing knowledge flows across borders

17. 17 Innovation, Integration & Economic Development Increasing knowledge flows across borders increasing need to manage, protect & enforce IPRs across borders

18. 18 Channels of Int’l Knowledge Flows Int’l trade Foreign direct investment X-border licensing Research cooperations People

19. 19 Int’l IPR Enforcement IPRs are national, yet the goods & services they underpin are increasingly produced & sold internationally w/ growing int’l trade, trade in counterfeits & pirated goods is increasing

20. 20 Int’l IPR Enforcement Weak IPR enforcement can compromise economic development by undermining channels of knowledge transfer:  Lower-tech FDI and lower-tech outsourcing  Less FDI & outsourcing (protecting supply chains)  Weakening links b/w foreign & domestic firms  Less R&D cooperation

21. 21 Int’l IPR Enforcement Counterfeiting & piracy organized internat’lly Fakes shipped across many borders Increasing importance of internet  Need for int’l cooperation

22. 22 Int’l IPR Commercialization To achieve “critical mass”, all actors in the commercialization process will have to increasingly think internationally Universities => research cooperations, staff Firms => sourcing of R&D, licensing, cooperations Investors

23. 23 Int’l IPR Commercialization Need for int’l IPR management strategies Need for advisory & consultancy services w/ int’l perspective Need for contracts across jurisdictions Need for harmonization to reduce costs

24. 24 Summary Globalization & accelerating innovation  Catching-up economies need to integrate into global production networks & to strengthen innovative capacity  Hence need to manage & enforce IPRs across borders

25. 25 Upcoming UNECE Activities Astana 21-22 May: Financing Innovative Enterprises Geneva 28-29 Sept: Innovation-based Entrepreneurial Opportunities Bishkek Oct/Nov: Knowledge-based Development

26. 26 Some CECI Publications on Knowledge-based Development www.unece.org/ceci/

27. 27 Thank You! http://www.unece.org/ceci/Welcome.html mailto: ralph.heinrich@unece.orgralph.heinrich@unece.org phone: +41 22 917 1269