nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2024‒01‒29
two papers chosen by
Giovanni Battista Ramello, Università di Turino

  1. Cross-border Patenting, Globalization, and Development By LaBelle, Jesse; Martinez-Zarzoso, Inmaculada; Santacreu, Ana Maria; Yotov, Yoto
  2. Reflection on the implementation of Decision on Implementation of Article 66.2 of the TRIPS Agreement: Incentive for technology transfer to least-developed countries By van Weelde, Jessyca; Wu, Xiaoping; Chiang, Ting-Wei (Alex); Khazin, Bassam Peter

  1. By: LaBelle, Jesse (Northwestern University); Martinez-Zarzoso, Inmaculada (Univerity of Göttingen & Universitat Jaume I); Santacreu, Ana Maria (Federal Reserve Bank of St. Louis); Yotov, Yoto (Drexel University)
    Abstract: We build a stylized model that captures the relationships between cross-border patenting, globalization, and development. A byproduct of our theory is a gravity equation for cross-border patents. To test the model’s predictions, we compile a new comprehensive dataset that tracks patents within and between countries and industries, for 1980-2019. The econometric analysis reveals a strong, positive impact of policy and globalization on cross-border patent flows, especially from rich (North) to poor (South) countries. A counterfactual welfare analysis suggests that the increase in patent flows from North to South has benefited both regions, with South gaining more than North post-2000, thus lowering real income inequality in the world.
    Keywords: Cross-border Patents; Gravity; Policy; Globalization; Development
    JEL: F63 O14 O33 O34
    Date: 2023–12–15
  2. By: van Weelde, Jessyca; Wu, Xiaoping; Chiang, Ting-Wei (Alex); Khazin, Bassam Peter
    Abstract: Technology transfer is deeply embedded in the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement). Several provisions address technology transfer, which constitute an essential part of the efforts made by the TRIPS negotiators to strike a balance between the advancement of technological innovation and the promotion of transfer and dissemination of technology. Article 66.2 specifically obligates developed country Members to provide incentives to enterprises and institutions in their territories to promote and encourage technology transfer to least-developed country (LDC) Members in order to enable them to create a sound and viable technological base. This paper summarizes the WTO TRIPS Council's work on the implementation of Article 66.2 from 2018 to 2020, including the implementation of a reporting mechanism for developed country Members' programmes established by the TRIPS Council and the TRIPS Council's review of the ensuing reports, and annual Workshops convened to enhance practical dialogue on technology transfer under this provision. In particular, it provides an analytical review of 708 programmes broken down into seven categories of technology, namely agriculture and food; environment and climate change; information and communication technology (ICT); public health and pharmaceuticals; intellectual property; business, trade and finance; and education and social sciences. The paper also reports on a survey of LDC Members which identified as priority areas for technology transfer as agriculture and food; environment and climate change; ICT; and public health and pharmaceuticals. The paper concludes by drawing on lessons learned from the past 25 years' experiences and reflecting on prospects for future work.
    Keywords: technology transfer, LDCs, Article 66.2, TRIPS, incentives, agriculture, environment, public health, ICT, SDGs, knowledge transfer
    JEL: F13 O3 O31 O34 O38
    Date: 2023

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