This document discusses the role of intellectual property in economic growth. It argues that innovation drives national economic growth, and that intellectual property protection encourages innovation. It notes that developed countries now have knowledge-based economies that rely heavily on intellectual property, while developing countries still rely on primary industries. The document also acknowledges that very strong intellectual property protections could inhibit growth in poor countries by limiting knowledge sharing. Overall, it presents India as an example of a country that has benefited from a balanced intellectual property system, experiencing high economic growth through policies that encourage investment and trade while still allowing for knowledge diffusion.

1. INTELLECTUAL PROPERTY
- CONTRIBUTION IN COUNTRY’S ECONOMIC GROWTH
SUBMITTED TO : AMISHA MEHTA SUBMITTED BY : BITTU SINGH
RADHE KUMAR
SHUBHAM SINGH

2. Overview
 Innovation - drives growth of a country
 Progressive economy
• - open International trade
• – increase in competition
• - better and efficient IP protection
 Human Knowledge and New Ideas
• – adds to economic growth
• - generates employment
 Developing countries
• – primary sector industries
 Developed countries
• – Knowledge based industry
– part and parcel of economy

3. Problem Knowledge
Innovation Imagination
Intellectual Property The SOLUTION

4. Role in Different Economies
 Advanced
• – strengthening IPRs raises growth
• - comes through increased innovation, domestic patenting and
technology diffusion
 Middle Income
• – strong IPRs encourages innovation through foreign patenting and
international trade
 Third World
• - strong IPRs – no effect on innovation
- tend to propel growth

5. Other Side of the Coin
 Tough IPR regime
• Poor countries - inhibits or lengthens the imitative stage of
necessary development to inculcate
innovative ability
- affects adversely by choking knowledge
spill-overs
- increased cost of pharmaceutical products
• leads to monopoly power for patent holders
• reduces incentive to innovate
• limits diffusion of knowledge
 high administrative cost of developing and enforcing an active IPR
regime

6. India : An Emerging Economic Hotspot
 Gradual and steady journey to a growth rate of 7 percent-
plus
• – combination of factors
• - evolving and balanced IPR regime
 The Patents Act, 1970
• – landmark act
• – industrial development of India
• – encouraged inventions
• - commercial advances
• - leading FDI destination
• - technology transfer benefits

7. And Figures Never Lie…

8. OECD Conference : November, 2010
“ Our focus remains on instituting
policies of high growth aimed at
encouraging investment flows and
expanding trade. We currently
receiving $6 billion annually as
foreign investment. We need several
times this amount. We have to
strengthen investor confidence and
have done so by putting in place a
new Intellectual Property Rights
regime… ”
Dr. Manmohan Singh , Former Prime Minister of India

9. The USA : World’s Powerhouse
 Intellectual Property
• accounts for almost 33% of the value of US corporates
• worth more than $ 5 trillion
• related industries grow at a rate twice that of Economy as
a whole
• contributes to growth of all sectors
• growing share of exports
• led to huge advances in industries such as medicines,
textiles, rail-roads, steel, farm equipments etc.
• incentive structure – Research & Development
- economic strides

10. Some Stats…

11. What to infer ?
 Intellectual Property
• Commercial application of innovation and creativity
• Improves and enriches our lives at both practical and cultural
levels
• Empowers by rewarding creators
• Stimulates economic growth
• Promotes Human Resource Development
• Available to all people for benefits
• Can thrive only if its importance is fully understand and is
protected vigorously by laws

12. References :
 http://www.wipo.int/edocs/pubdocs/en/intproperty/888/wipo_pub_888_1.pd
f
 https://www.unido.org/fileadmin/import/60030_05_IPR_rights_in_technolog
y_transfer.pdf
 http://usa.usembassy.de/etexts/econ/eop/2006/2006-10.pdf
 http://www.wipo.int/export/sites/www/about-
ip/en/studies/pdf/wipo_unu_07_india.pdf
 http://www.iccwbo.org/data/documents/intellectual-
property/ip_powerhouse-for-innovation-and-economic-growth/