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  • 4 - Is IPR a Facilitator of, or a Barrier to, Catch-Up by Latecomers?

  • from Part I - Theoretical, Empirical, and Policy Issues
  • Edited by Daniel Benoliel, University of Haifa, Israel, Peter K. Yu, Texas A & M University School of Law, Francis Gurry, World Intellectual Property Organization, Keun Lee, Seoul National University
  • Book:
    Intellectual Property, Innovation and Economic Inequality
    Published online:
    05 December 2024
    Print publication:
    12 December 2024, pp 106-124
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  • Summary

    Without enhancing their innovation capabilities, latecomer countries will be subject to the middle-income trap, and global inequality will not be reduced. This chapter thus discusses the roles of diverse forms of intellectual property rights (IPR) in promoting innovation among latecomers. It argues, first, that utility model or petit patents can be a useful form of IPR for recognizing and encouraging innovation by latecomers in their earlier stage of development, and, secondly, that latecomer firms in sectors involving tacit knowledge can rely on trademarks, rather than regular patents, as the main forms of IPR in their innovation and growth pathways. This chapter further discusses the negative impacts of strong IPR protection in Northern economies on the exports by Southern or catch-up economies to Northern markets. As a means to overcome this barrier, the chapter discusses the role of leapfrogging strategy, where latecomers pursue different technological trajectories from those of incumbent countries.