Patents and economic development in South Africa: Managing intellectual property rights
Keywords:
intellectual property rights, IPR, economic development, patents, South Africa
Abstract
Intellectual property rights systems are important policy instruments in the armoury of governments. They have the potential to have favourable or adverse consequences for the relevant national system of innovation, technology transfer, research and development and, eventually, economic growth. Whilst there is a debate related to optimisation of patent systems in the developed world, there is limited debate related to the approaches used in developing countries like South Africa. This article presents an effort to assess whether the South African non-examining patent system makes a contribution or if it is detrimental to the country’s development. We found that the current intellectual property rights regime not only fails to support the objectives of the national innovation system but also that it facilitates exploitation by foreign interests and creates substantial social costs. Policy recommendations are provided.References
1. Maskus EK. Intellectual property rights in the global economy. Washington DC: Institute for International Economics; 2000.
2. Merrill AS, Levin CR, Myers BM. A patent system for the 21st century. Committee on Intellectual Property Rights in the Knowledge Based Economy, National Research Council. Washington DC: The National Academies Press; 2004.
3. Pugatch PM, editor. The intellectual property debate: Perspectives from law, economics and political economy. Cheltenham, UK: Edward Elgar Publishing; 2006.
4. Carolan MS. The problems with patents: A less than optimistic reading of the future. Dev Change. 2009;40(2):361–388. http://dx.doi.org/10.1111/j.1467-7660.2009.01518.x
5. Horstmann I, MacDonald GM, Slivinski A. Patents as information transfer mechanisms: To patent or (maybe) not to patent. J Political Econ. 1985;93(5):837–858. http://dx.doi.org/10.1086/261338
6. Gallini N. Patent policy and costly imitation. Rand J Econ. 1992;23:52–63. http://dx.doi.org/10.2307/2555432
7. Merges R, Nelson RR. On the complex economics of patent scope. Columbia Law Rev. 1990;90:839–916. http://dx.doi.org/10.2307/1122920
8. O’Donoghue T, Scotchmer S, Thisse FJ. Patent breadth, patent life, and the pace of technological progress. J Econ Manage Strategy. 1998;7(1):1–32. http://dx.doi.org/10.1162/105864098567317
9. Heller M. The gridlock economy: How too much ownership wrecks markets, stops innovation and costs lives. New York: Basic Books; 2008.
10. Guellec D, Van Pottelsberghe de la Potterie B. The economics of the European patent system. Oxford: Oxford University Press; 2008.
11. Nelson RR. The market economy and the scientific commons. Res Policy. 2004;33(3):455–471. http://dx.doi.org/10.1016/j.respol.2003.09.008
12. Lerner J. 150 years of patent protection. Am Econ Rev. 2002;92(2):221–225. http://dx.doi.org/10.1257/000282802320189294
13. Moser P. How do patent laws influence innovation? Evidence from nineteenth century world fairs. NBER Working Paper No w9909 [document on the Internet]. c2002 [cited 2010 Jan 15]. Available from: http://www.nber.org/papers/w9909
14. Branstetter L, Fisman R, Foley C. Do stronger intellectual property rights increase international technology transfer? Empirical evidence from U.S. firm-level panel data [document on the Internet]. c2003 [cited 2010 Jan 17]. Available from: http://econ.worldbank.org/files/35589_wps3305.pdf
15. National Research Council of the Academy of Sciences. A patent system for the 21st century. Washington DC: National Academies Press; 2004. Available from: http://books.nap.edu/openbook.php?record_id=10976&page=4
16. Arora A, Ceccagnoli M, Cohen WC. R&D and the patent premium. NBER Working Paper 9431. Cambridge, MA: National Bureau for Economic Research; 2003.
17. Kanwar S, Evenson RE. Does intellectual property protection spur technical change? Discussion Paper N831. New Haven, CT: Yale University; 2004.
18. Hall BH, Ziedonis RH. The patent paradox revisited: An empirical study of patenting in the US semiconductor industry 1979–1995. Rand J Econ. 2001;32(1):101–128. http://dx.doi.org/10.2307/2696400
19. Machlup F. An economic review of the patent system. Study of the Subcommittee on Patents, Trademarks and Copyright of the Committee on the Judiciary. 85th Congress, Second Session, Study no 15. Washington DC: United States Senate; 1958.
20. United Nations Conference on Trade and Development (UNCTAD). The role of the patent system in the transfer of technology to developing countries. Geneva: UNCTAD; 1975.
21. United Nations Conference on Trade and Development (UNCTAD). The role of trademarks in developing countries. Geneva: United Nations; 1981.
22. Kearney AT. FDI confidence index. Cambridge, MA: Global Business Policy Council; 2003.
23. Lippoldt T. Can stronger intellectual property rights boost trade, foreign direct investment and licensing in developing countries? In: Pugatch PM, editor. The intellectual property debate: Perspectives from law, economics and political economy. Cheltenham, UK: Edward Elgar Publishing; 2006.
24. Chang HJ. Bad samaritans: The myth of free trade and the secret history of capitalism. New York: Bloomsbury Press; 2008.
25. List F. The national system of political economy. London: Longmans, Green and Company; 1841.
26. Mandeville DT, Lamberton MD, Bishop JE. Economic effects of the Australian patent system. Canberra: AGPS Press; 1982.
27. Chatterjee S, David J, Deng F, Dippon C, Lopez M. Intellectual property rights in developing nations [document on the Internet]. c2008 [cited 2010 Feb 23]. Available from http://www.mondaq.com/article.asp?articleid=57856
28. Multinationals ignore South African patent law. Tectonic [serial online]. 2008 [cited 2010 Mar 23]. Available from http://www.tectonic.co.za/wordpress/?p=1331
29. Commission on Intellectual Property Rights. Integrating intellectual property rights and development policy. Report of the Commission on Intellectual Property Rights. London: Commission on Intellectual Property Rights; 2002.
30. Lubango LM. Industry specific know-how, inventiveness, and research performance of universities’ entrepreneurs: A cross-national patent portfolio analysis. PhD thesis, Pretoria, University of Pretoria, 2009.
31. Park WG, Wagh S. Index of patent rights. In: Gwartney J, Lawson R, editors. Economic freedom of the world: 2002 annual report. Washington DC: Fraser Institute; 2002.
32. Pouris A. Quantitative assessment of South Africa’s inventive outputs: International patent analysis. S Afr J Ind Eng. 2009;20(1):13–29.
2. Merrill AS, Levin CR, Myers BM. A patent system for the 21st century. Committee on Intellectual Property Rights in the Knowledge Based Economy, National Research Council. Washington DC: The National Academies Press; 2004.
3. Pugatch PM, editor. The intellectual property debate: Perspectives from law, economics and political economy. Cheltenham, UK: Edward Elgar Publishing; 2006.
4. Carolan MS. The problems with patents: A less than optimistic reading of the future. Dev Change. 2009;40(2):361–388. http://dx.doi.org/10.1111/j.1467-7660.2009.01518.x
5. Horstmann I, MacDonald GM, Slivinski A. Patents as information transfer mechanisms: To patent or (maybe) not to patent. J Political Econ. 1985;93(5):837–858. http://dx.doi.org/10.1086/261338
6. Gallini N. Patent policy and costly imitation. Rand J Econ. 1992;23:52–63. http://dx.doi.org/10.2307/2555432
7. Merges R, Nelson RR. On the complex economics of patent scope. Columbia Law Rev. 1990;90:839–916. http://dx.doi.org/10.2307/1122920
8. O’Donoghue T, Scotchmer S, Thisse FJ. Patent breadth, patent life, and the pace of technological progress. J Econ Manage Strategy. 1998;7(1):1–32. http://dx.doi.org/10.1162/105864098567317
9. Heller M. The gridlock economy: How too much ownership wrecks markets, stops innovation and costs lives. New York: Basic Books; 2008.
10. Guellec D, Van Pottelsberghe de la Potterie B. The economics of the European patent system. Oxford: Oxford University Press; 2008.
11. Nelson RR. The market economy and the scientific commons. Res Policy. 2004;33(3):455–471. http://dx.doi.org/10.1016/j.respol.2003.09.008
12. Lerner J. 150 years of patent protection. Am Econ Rev. 2002;92(2):221–225. http://dx.doi.org/10.1257/000282802320189294
13. Moser P. How do patent laws influence innovation? Evidence from nineteenth century world fairs. NBER Working Paper No w9909 [document on the Internet]. c2002 [cited 2010 Jan 15]. Available from: http://www.nber.org/papers/w9909
14. Branstetter L, Fisman R, Foley C. Do stronger intellectual property rights increase international technology transfer? Empirical evidence from U.S. firm-level panel data [document on the Internet]. c2003 [cited 2010 Jan 17]. Available from: http://econ.worldbank.org/files/35589_wps3305.pdf
15. National Research Council of the Academy of Sciences. A patent system for the 21st century. Washington DC: National Academies Press; 2004. Available from: http://books.nap.edu/openbook.php?record_id=10976&page=4
16. Arora A, Ceccagnoli M, Cohen WC. R&D and the patent premium. NBER Working Paper 9431. Cambridge, MA: National Bureau for Economic Research; 2003.
17. Kanwar S, Evenson RE. Does intellectual property protection spur technical change? Discussion Paper N831. New Haven, CT: Yale University; 2004.
18. Hall BH, Ziedonis RH. The patent paradox revisited: An empirical study of patenting in the US semiconductor industry 1979–1995. Rand J Econ. 2001;32(1):101–128. http://dx.doi.org/10.2307/2696400
19. Machlup F. An economic review of the patent system. Study of the Subcommittee on Patents, Trademarks and Copyright of the Committee on the Judiciary. 85th Congress, Second Session, Study no 15. Washington DC: United States Senate; 1958.
20. United Nations Conference on Trade and Development (UNCTAD). The role of the patent system in the transfer of technology to developing countries. Geneva: UNCTAD; 1975.
21. United Nations Conference on Trade and Development (UNCTAD). The role of trademarks in developing countries. Geneva: United Nations; 1981.
22. Kearney AT. FDI confidence index. Cambridge, MA: Global Business Policy Council; 2003.
23. Lippoldt T. Can stronger intellectual property rights boost trade, foreign direct investment and licensing in developing countries? In: Pugatch PM, editor. The intellectual property debate: Perspectives from law, economics and political economy. Cheltenham, UK: Edward Elgar Publishing; 2006.
24. Chang HJ. Bad samaritans: The myth of free trade and the secret history of capitalism. New York: Bloomsbury Press; 2008.
25. List F. The national system of political economy. London: Longmans, Green and Company; 1841.
26. Mandeville DT, Lamberton MD, Bishop JE. Economic effects of the Australian patent system. Canberra: AGPS Press; 1982.
27. Chatterjee S, David J, Deng F, Dippon C, Lopez M. Intellectual property rights in developing nations [document on the Internet]. c2008 [cited 2010 Feb 23]. Available from http://www.mondaq.com/article.asp?articleid=57856
28. Multinationals ignore South African patent law. Tectonic [serial online]. 2008 [cited 2010 Mar 23]. Available from http://www.tectonic.co.za/wordpress/?p=1331
29. Commission on Intellectual Property Rights. Integrating intellectual property rights and development policy. Report of the Commission on Intellectual Property Rights. London: Commission on Intellectual Property Rights; 2002.
30. Lubango LM. Industry specific know-how, inventiveness, and research performance of universities’ entrepreneurs: A cross-national patent portfolio analysis. PhD thesis, Pretoria, University of Pretoria, 2009.
31. Park WG, Wagh S. Index of patent rights. In: Gwartney J, Lawson R, editors. Economic freedom of the world: 2002 annual report. Washington DC: Fraser Institute; 2002.
32. Pouris A. Quantitative assessment of South Africa’s inventive outputs: International patent analysis. S Afr J Ind Eng. 2009;20(1):13–29.
Published
2011-11-01
Section
Research Articles