Intellectual Property Rights, Trade, and Economic Development

Introduction Governments and scholars have for some time grappled with the question of whether there is a connection between intellectual property (IP) and economic development, and if so, how strong the link is. Economic literature is equivocal, with some studies concluding that the connection is strong while others conclude it to be fairly weak (and that there may not even be a connection for least developed countries [LDCs]). What is clear is that countries have historically shaped and amended their IP regimes to promote domestic needs and objectives. It is also clear that several countries with weak IP policies have achieved rapid economic growth and development over the past five decades. For these countries, the strengthening of IP rights (IPRs) occurred after the initial stages of increased growth and development. These countries include the majority of the first generation of newly industrializing economies, including Korea and Taiwan, and other developing nations, such as Brazil, India, and Malaysia. The Japanese developmental experience is similar, with the nation quickly developing in the 1960s and 1970s and only adopting strong IPRs protection in the 1980s. Even the United States, now one of the strongest proponents of strong IP protection, did not fully embrace high levels of IP protection until the early 1980s.