According to the Organization for Economic, Cooperation and Development (OEDC): “The results point to a tendency for IPR reform to deliver positive economic results.” However, in order to have an active effect on economic growth through IPR, there are other indicators that countries have to work with, for example: have the ability to conduct businesses, promoting innovation and productive processes. Once the economy has become stable and the strategy is clear, IPR can actually become a powerful tool to achieve economic growth (OECD, 2022).
Moreover, many studies have shown that IPR is very beneficial for less developed countries since it motivates enterprises and incentives technological research within the country. Not only improves the creation of ideas and entrepreneurship, but it also increases the chances of foreign direct investment (FDI) in developing countries. This new strategy from developed countries to invest in less developed countries happens to be a win-win for both sites, not only the “global north”. Likewise, developing countries can improve the process of technology transfer to developed countries by providing IPR protection to their services and products. By using protection of the ideas, countries from the south can produce more creative outputs and, therefore, drive towards a more technological and innovative economy (European Comission, 2022).
Not only it improves the trade flow with outside countries, but it also incentivizes domestic innovation, by promoting risk-taking, problem solving and other skills of that type. Moreover, the fact that their ideas can be taken into account, motivates society in less developed countries to promote ideas, to be more creative and, therefore, to create a more competitive market. In less developed countries, policymaking on IPR isn’t a priority, thus we can see the lack of entrepreneurship within the local economies. By having innovation and promoting technological advances, less developed countries can have a greater chance of entering the international trade system and earn huge benefits by having the intellectual property rights stablished (Ezell, 2019).
Consequently, we can see that due to the interconnected world we live in, less developed countries have a better access to new technology and techniques. For example, the EU is working together with the region through supporting international firms and doing business in order to promote development. Thus, IPR is beneficial for exporters, importers, manufacturers, and delivery companies by creating a more jobs and, therefore, an exponential economic growth. It is known that economic growth leads to a better and faster development of the economy, since people become wealthier and are able to afford a better education, invest, innovate and have a better lifestyle. Leading a less developed country to institutional changes towards an IP, can help many families scape the poverty cycle that they are trapped in due to the inequality levels within the State (IPKEY, 1970)
According to the IPKey (International Cooperation), there are European firms working together with other countries from all over the world. It is in the best interest for everyone that we ensure quality rights by protecting our ideas, since IPR is key for every business, regardless of the size of the firm. Also, the European Union has been a pioneer within the protection and promotion of Intellectual Property Rights, by collaborating and cooperating with other countries in the world. By creating digital tools and a network of IPR, the EU has been committed to make equal conditions and guarantee fair trade within all the entities in the network. Intellectual rights are behind the merits of most of the European firms, this is due to how patents push towards a more innovative economy and businesses become more valuable, creating more jobs and a greater GDP every year (IPKEY, 1970)
On the other hand, the EU is also trying to work with China, which isn’t a less developed country anymore, by enforcing transparency and improving the implementation of intellectual property rights and IP enforcement system. Likewise, the EU es willing to facilitate the access to European firms to the Chinese market and raise awareness of the importance of IP in the region. It is very hard to access the Chinese market since they are already one of the most innovative and technological countries in the world and the competition in the region is very high. Similarly, the structure of the market and the power of China’s government isn’t a way of making cooperation and collaboration with European firms easier. It is a major threat for the European companies that China does not respect or enforce the IPR since there are many problems with IP stealing and lack of protection level with new innovative ideas from every European country (IPKEY, 1970)
In conclusion, the European Union is making cooperative efforts with less developed countries to enforce and promote Intellectual rights in order to improve their markets value, innovation and competition. By making an improvement in IP, less developed countries are able to make better trading partners, improve manufacturers quality and increase the quantity of exports and imports. Most of the IP protection is beneficial for these regions since it can create a greater economic growth, job creation and an increase in the GDP. Overall, IP is a powerful tool that must be considered soon in every competitive market. A side from many countries that don’t respect intellectual property, countries and organization have to work together in order to generate regulations and enforce it on every market.