ICT and the Developing Countries: Implementing Trade-Related Aspects of Intellectual Property Rights

Abstract: This study utilizes a panel data of 69 developing and developed countries to analyze the impacts of Trade-Related Aspects of Intellectual Property Rights (TRIPS) on the innovation outcomes of the Information and Communication Technology (ICT) sector. The panel analysis is assisted with detailed observations on successful cases that have achieved impressive innovation outcomes over the years, in order to provide a more comprehensive discussion on the issue. The TRIPS Agreement has been promoted as the key to stimulating innovations in the developing countries. However, there have been disputes on TRIPS around a number of issues, including the inequality between developed and developing countries, as well as a mismatch between the strict regulations of TRIPS and the need of developing countries to have a flexible intellectual property right (IPR) environment. Results from this study suggest that IPRs are not a significant factor on innovation outcomes in the ICT sector for the developing countries. Combined with experience from successful cases, evidence suggests that developing countries should be empowered to tailor IPRs according to their specific needs.