The Role of Intellectual Property Rights in Innovation of Developing Countries

Much debate in the field of intellectual property rights and its role in economic development is going on. This paper discuss about the effects of four stronger factors on innovation that can be affected by IPRs in developing countries. These economic variables that affected by IPR include; FDI، trade and innovation، public health، genetic resources and traditional knowledge. In this paper، innovation is defined base on OECD statements. Innovation is the implementation of a new or significantly improved product (good or service)، process، new marketing method or a new organizational method in business practices، workplace organization or external relations. Where the cost of research is high and there is much risk for the return of the investment، countries use different strategies to encourage the innovation. Implementing a strong IPR regime is an important way to motivate researchers and firms for R&D activities. An empirical study has been conducted on 118 countries، both developing and developed countries. It is concluded that stronger IPR does not have direct effect on economic growth or increasing innovation in developing countries while a direct and strong relationship between these variables are visible in developed countries. The positive role of IPR in the economy of developing countries must be accounted. In addition، these countries are under the pressure of developed countries to strength their IPR regime، so the countries must develop their IPR law in a manner to prepare the most effective way for improving their economy.