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Managing IP in Knowledge-based Development International cooperation to improve framework conditions in catching-up economies Ralph Heinrich UNECE Team of Specialists on Intellectual Property Skopje, 1 April 2009 1 The UN Economic Commission for Europe (ECE) 2 The UN Economic Commission for Europe (ECE) • 56 member countries • home to 20 percent of the world’s population • including most of the developed economies, • but also emerging market economies and • a few low income countries 3 What UNECE does helps to implement global UN initiatives at the regional level fosters sustainable development & economic cooperation in its region 4 What UNECE does fosters sustainable development & economic cooperation in its region by … • providing a multilateral forum for policy discussion and negotiations • brokering and administrating international standards and conventions • engaging in capacity building and technical cooperation 5 UNECE’s main areas of activity • • • • • Trans-border environmental issues Border-crossing transport issues Facilitation of international trade Trans-border energy issues International harmonization of statistics and • Economic Cooperation and Integration 6 Committee on Economic Cooperation and Integration (CECI) Established in 2006 to promote “… a policy, financial and regulatory environment conducive to • economic growth, • innovative development • and higher competitiveness focusing mainly on countries with economies in transition” 7 CECI - main areas of work promoting • innovation and competitiveness • public-private partnerships • entrepreneurship • Financing Innovation and • Intellectual Property Rights 8 The Team of Specialists on Intellectual Property (TOS-IP) • provides a forum for the exchange of experiences • collects/ disseminates good practices and policy recommendations • engages in capacity building and policy advice at national & sub-regional level 9 … through • its network of experts representing – – – – government ministries and agencies the business community international organizations and academic institutions • and its inter-governmental process 10 TOS-IP • constituted in Nov 06 • currently ~ 120 experts • from ~35 countries 11 TOS-IP’s mandate helps to … • “build up national innovation systems • commercialize intellectual property • improve the investment environment in creative, innovative and high technology industries … • among others through effective enforcement of intellectual property rights”12 ToS-IPs mandate Hence commercialization & enforcem’t as 2 sides of 1 coin • w/o enforcem’t, IPRs have no commercial value • w/o commercialization, no incentive to enforce 13 Economic Role of IPRs Well-designed IPRs: Provide incentives for innovation Underpin markets for intellectual assets Encourage disclosure & diffusion of knowledge 14 The International Dimension • Innovation THE key driver of economic growth • reduced costs of creating & transmitting knowledge … • … including across borders faster innovation & closer economic integration 15 Innovation, Integration & Economic Development • globalization of int’l supply chains & production networks • … and increasingly internationalization of R&D • increasing knowledge flows across borders 16 Innovation, Integration & Economic Development Increasing knowledge flows across borders increasing need to manage, protect & enforce IPRs across borders 17 Channels of Int’l Knowledge Flows • • • • • Int’l trade Foreign direct investment X-border licensing Research cooperations People 18 Int’l IPR Enforcement • IPRs are national, yet • the goods & services they underpin are increasingly produced & sold internationally • w/ growing int’l trade, trade in counterfeits & pirated goods is increasing 19 Int’l IPR Enforcement Weak IPR enforcement can compromise economic development by undermining channels of knowledge transfer: Lower-tech FDI and lower-tech outsourcing Less FDI & outsourcing (protecting supply chains) Weakening links b/w foreign & domestic firms Less R&D cooperation 20 Int’l IPR Enforcement • Counterfeiting & piracy organized internat’lly • Fakes shipped across many borders • Increasing importance of internet Need for int’l cooperation 21 Int’l IPR Commercialization • To achieve “critical mass”, all actors in the commercialization process will have to increasingly think internationally • Universities => research cooperations, staff • Firms => sourcing of R&D, licensing, cooperations • Investors 22 Int’l IPR Commercialization • Need for int’l IPR management strategies • Need for advisory & consultancy services w/ int’l perspective • Need for contracts across jurisdictions • Need for harmonization to reduce costs 23 Summary • Globalization & accelerating innovation Catching-up economies need to integrate into global production networks & to strengthen innovative capacity Hence need to manage & enforce IPRs across borders 24 Upcoming UNECE Activities • Astana 21-22 May: Financing Innovative Enterprises • Geneva 28-29 Sept: Innovation-based Entrepreneurial Opportunities • Bishkek Oct/Nov: Knowledge-based Development 25 Some CECI Publications on Knowledge-based Development www.unece.org/ceci/ 26 Thank You! • http://www.unece.org/ceci/Welcome.html • mailto: [email protected] • phone: +41 22 917 1269 27