Intellectual property rights and economic development

Over the past decade, the production of intellectual property rights (IPRs) has undergone tremendous changes--fostered on the one hand, by a widening of the range of products and technologies covered by proprietary rights and on the other hand, by policy shifts that have initiated a move towards globally harmonized standards of protection. This discussion paper reviews these changes and their implications for developing countries. It briefly outlines the main IPRs instruments, the institutions that govern IPRs at the national and international level, and the importance of IPRs in various economic activities. The economic effects of different IPRs regimes and their relationship to other areas of public policy are discussed subsequently. Based on this review, the paper explores approaches to IPRs reforms in developing countries. The authors conclude that recent changes in the IPRs field pose significant challenges to the developing world. At the same time, developing countries can enhance the benefits of recent policy changes by establishing an effective institutional framework for IPRs--one that facilitates access of local entrepreneurs to the IPRs system and that adopts a pro-competitive approach to intellectual property. Assistance from industrialized countries and multilateral organizations can make important contributions in this regard.

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