Intellectual property challenges for developing countries: An economic perspective

The global Intellectual Property system currently is undergoing substantial expansion and modernization, largely through implementation of the Agreeme nt on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The TR IPS agreement envisions significantly stronger protection for intellectual property rights, investments in regulatory agencies to enforce these rights , and more consistent regimes of protection across international borders. A n important economic question is the likely impact of these changes on deve loping nations. The issues involved in analyzing the role of intellectual p roperty rights in promoting economic development and growth are extremely c omplex. Many of the relevant concepts are difficult to measure. Expanded in tellectual property regimes also have numerous, often contradictory impacts on a nation's development. Despite these complexities, a growing body of r esearch suggests that stronger intellectual property rights, if properly st ructured, can increase economic growth and encourage technological developm ent. Developing nations face an important challenge reconciling intellectual pro perty protection with the global push for more open, procompetitive trade. Professor Maskus has traveled to a number of developing countries and perfo rmed extensive economic research on the relationship of intellectual proper ty rights regimes, trade, and economic growth. This article outlines the ma ny issues that complicate this analysis, emphasizing the channels through w hich strengthened international intellectual property rights can stimulate or limit economic growth. After reviewing the current research, the article concludes that a regime of expanded property right protection holds consid erable promise for promoting long-term economic growth and technological in novation among developing nations. Finally, the article provides policy and regulatory recommendations to complement intellectual properly protection and curb potential system abuses. This article emphasizes the care that dev eloping nations must exercise in implementing a new intellectual property r egime.