Transcript Why IP is Important?

Intellectual Property and Its
Role in Economic Development
WIPO National Roving Workshop on IP Strategy
Beira, Nampula and Maputo, Mozambique
February 6 to 14, 2006
Jared Nyagua
IP and New Technologies Division, WIPO
Topics to be Covered
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I.
II.
III.
IV.
V.
What is IP?
Why is IP Important?
What is IP Strategy?
Who will make IP Strategy?
How to make IP Strategy?
I.
PROPERTY
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Real
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Personal
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Capital
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Intellectual
What is IP?
VALUE CREATION
ACTIVITY
 Product Creation
 Investment
 Improvement
 Sale
 Rent or Licensing
RESULTS
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Revenues/
Profits
Employment
Appreciation
Solution of
Needs
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What are “IP Assets”?
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Patents (inventions)
Trademarks
Industrial designs
Geographical
indications
Copyright (works of
authorship)
Trade Secrets, etc.
Human Capital
+
Strategically
Developed,
Targeted to a Market
and Used
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II. Why is IP Important?
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Economies
based on land,
physical assets
Trade in goods
Cheap labor
Nationally
based trade
Pre-Internet
economy
• Knowledge Based
Economies
• Value-added goods /IP
Licensing
• Productive Human
Capital
• Regional/Global Markets
• Internet
Old Economy
New Economy
Why IP is Important?
There is an IP Divide...
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91% of patents are from OECD
countries.
PCT filings and national patent filings in
developing countries are by nonresidents primarily.
Why IP is Important?
World Trade of Cultural Goods
(in millions of dollars, 1980-98)
Source: Study on International Flows of Cultural Goods Between 1980-98, UNESCO 2000.
Cultural industries
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Trade in cultural goods has grown exponentially over the last two decades. Between
1980 and 1998, annual world trade of cultural goods surged from US$95.3 billion to
US$387.9 billion.
On a global scale, trade remains concentrated in a few countries: in 1998, thirteen
countries were responsible for more than four-fifths of imports, and twelve countries
for the same proportion of exports.
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Why IP is Important?
Because of technology
access...
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Lack of IP assets is a disadvantage
Royalty drain instead of royalty stream
Owning IP assets is an advantage
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Because of IP Licensing...
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Worldwide licensing revenues
– In 2001, $US 100 billion estimated
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Pharmaceutical licensing
– In 1996 US$3.5bn
– In 2000 US$10.5bn
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IT licensing
University and research center licensing
– In 2000 $US 1.3 billion by non-profits in North
America
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New entrants--Singapore, Brazil, Korea
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Because IP Owners Use IP
Assets to Make Money...
Why IP is Important?
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Build valuable portfolios of IP as base for licensing
revenues;
Offensive: Monopoly power for price and products;
Defensive: Avoid and defend against litigation;
Enhance products, upgrades, higher revenues and
margins;
Promote brand value for advertising;
Attracts Investments, Strategic alliances, joint
ventures;
Enhance corporate valuation.
Because IP is in Every Sector...
Categories of technical projects
funded by the World Bank and
Regional Development Banks
Water:
Management
Irrigation
Sanitation
Power
Drink
Agricultural technologies
Food processing
Agricultural irrigation
Cotton
Sugarcane
Cacao
Mango
Rice
Coffee
Coconut
Solar power
Photovoltaic
Transport
Road construction
Emergency assistance
Issued patents by the USPTO
(since 1976) related to those
categories
147,017
145
886
54
4,962
261
396
913
6
2,304
79
37
25
1,150
1,945
257
1,187
1,716
23,643
260
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Patents published in
2001 and 2002 at the
Espacenet
100,000
675
2,687
205
17,229
1,649
6,202
4,837
125
21,526
444
368
96
29,493
13,170
1,927
4,157
5,870
83,281
1,918
215
Patent applications published in 2001 and 2002 in member States of the European Patent Organization,
the European Patent Office and the World Intellectual Property Organization.
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III. What is IP Strategy?
Can IP Assets be Developed?
Public IP Strategy
Can IP Assets be Developed?
SOUTH KOREAN CASE
80
60
40
20
% resident
0
1986
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1991
2000
What is happening here?
The task is to identify what governmental and
enterprise policies support such results, and to
provide tools to Member States to implement such
policies in a proactive way.
Public IP Strategies Today
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Australia
Canada
Philippines
Japan
ASEAN
Romania
European Union
Mexico
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Can IP Assets be Developed?
Two Complementary Ways
IP
Importation=
TOT
local creation
Can IP Assets be Developed?
LOCAL CREATION OF IP ASSETS
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Universities, public research centers;
SME promotion and incentives;
Targeting and protecting new technology;
Recognizing local inventions in joint
ventures, FDI, technical assistance
projects;
Modification, enhancement of traditional
knowledge/folklore.
IV. Who Will Make IP Strategy?
Academia
Government
[Universities,
Research Centers]
Private Sector
[large enterprises,
SMEs,
individual inventors,
NGOs]
V. How to Make IP Strategy?
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The IP / Innovation Strategy House
Economic Growth
Technological Development and Solutions
IP Ownership
TOT/Licensing
IP Skills
Networks
Laws and Policies
Policy
•
Commitment
Marketing
Clusters
Incentives
Funding/Valuation
IP Audit and Plan
Education
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Expenditure in R&D as % of GDP
(2001)
5
4
3
2
1
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ad
ag
as
ca
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Ja
2)
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Total Expenditures (1989-2000 average) in R&D as a % of World GDP: 2.12%
Sources: 2002 World Development Indicators (World Bank) and UNESCO Institute for Statistics (March 2005).
¤ Data for 2000
# Data for 2001
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Expenditure on R&D as % of GDP
has been increasing in Uganda…
1996
0.51%
1997
0.53%
1998
0.57%
1999
0.65%
2000
0.74%
2001
0.82%
Source: UNESCO Institute for Statistics, March 2005
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...But the source of funds (%) for
expenditure on R&D comes mainly
from abroad
Funds from abroad
90.3%
Government
6.6%
Higher Education
0.6%
Business Enterprise
2.2%
Private non-profit
0.3%
Source: UNESCO Statistics Institute, March 2005
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Uganda has 14 Universities and at the National
Agricultural Research Organization (NARO) there
are 9 Research Centers. Still, the average of
researchers per million people (2001) is still low
Argentina
709
Singapore
4,053
Brazil
352
Sudan
245
China
584
S.Africa
192
Croatia
1,192
Uganda
25
Finland
7,110
UK
3,100
Japan
5,320
Zambia
55
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Source: UNESCO Statistics Institute, March 2005
The Program
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Theme One:
Theme Two:
Theme Three:
Theme Four:
Theme Five:
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Theme Six:
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Introduction
Professional Training
Policies and Incentives
Funding
IP Strategy Game
(small groups)
IP Audit Tool
(small groups)
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