One of the major reasons for the difference between the developed and developing countries is the presence of a gap in knowledge and not a gap in resources. Therefore, the developing countries should establish Intellectual Property Regimes to suit their own specific requirements in such a manner that they have more access to knowledge. Intellectual Property Laws protect those who invest their money and time in creative activities by ensuring a return on their investment. Patents and Copyrights are two instruments used to protect Intellectual Properties.
If a properly designed Intellectual Property regime is in place it will spur innovation. Innovation is the key to close the gap in knowledge prevalent between the developed and developing countries. However, it is essential to note that Intellectual Property is only a part of the total innovation process of a country. For instance, Switzerland and Netherlands did not have any laws to protect Intellectual Properties until 1907 and 1912 respectively. But these two countries were highly innovative even in the absence of any laws to protect the Intellectual Property.
Intellectual Property Rights give the owner of the property the exclusive right to use it. However, the owner has the freedom to allow the others to use it but usually for a payment of a fee. There are different laws to cover different kinds of Intellectual Property.
Patents provide the inventor the exclusive right to market his innovation for a limited period of time. At present the period of time allowed is 20 years from the time of application for the patent. Then it is 17 years from the time of granting the patent. However, there is flexibility in extending the 20-year period if there is undue delay in the granting process. Once a patent is granted no one else can sell the product without obtaining permission from the patent holder even if a person invents the same idea on his own.
Intellectual Property Laws should be formulated by giving due consideration to the country’s specific requirements without blindly following the advice given by international organizations with vested interests. Their proposed models are not in favour of the developing countries. If the agriculture sector is to undergo a rapid development process it is essential to develop a balanced Intellectual Property Regime to suit that development process.
At this juncture, it is worthwhile understanding how knowledge has become the priority area in the development process. In 1960s and 1970s capital was the priority area. Developing countries lacked capital and emphasis was placed on savings and investment. The World Bank was formed to help developing countries in this area. However, the developing countries could not achieve the desired development targets. Later, to overcome this situation the developed countries identified markets as the priority area.
Then the markets also did not deliver what was expected. This failure was attributed to too much involvement of the government in the development process. To remedy this situation, privatization, liberalization of trade, deregulation, reduction in government expenditure and borrowings were advocated. This process was expedited in 1980s with the collapse of communist states. By late 1990s it was realized that getting governments out of the way also did not deliver the expected results.
With the above experience, it is clearly evident that the government has to play a major role in the development process. Its involvement in the provision of basic education, legal frame works, infrastructure, social safety nets and in regulation of competition, activities of banks and activities that have impacts on the environment, has become vital. In the meantime knowledge surfaced as the priority area in the development process.
Knowledge is vital in development of human capital. Formal education plays an important role in this area. It is the responsibility of the government in the provision of education for development of human capital. In developing countries even tertiary education should be provided by the government as a majority of people cannot afford to enter privately run schools or universities. Otherwise, attempts to close the knowledge gap will end up with failure.
The benefits of innovation should be shared by the majority of people of the society. What is required is not just economic growth. What is important is socio economic development. Development means transforming the lives of people by improving the living standards of the poor as well.
Innovation in agriculture is vital to increase agricultural productivity in order to improve income of farmer families. Innovation in areas such as breeding, soil conservation, irrigation management, production and application of fertilizers, production and application of pesticides, production and use of machinery and tools used in cultural practices, storage of farm produce, processing of primary produce for value addition etc. should be encouraged by providing appropriate Intellectual Property Protection.
In the area of production of pesticides, there are no Sri Lankan firms capable of investing in basic manufacture and R&D. Pesticides manufacturing companies spend about $150 – 200 million to introduce one new pesticide to the market. Local research should be promoted in other areas mentioned above.
A developing country like Sri Lanka should design a balanced Intellectual Property regime to ensure that the innovator is benefited while delivering benefits to the society at large. There are advantages as well as disadvantages in the creation of a monopoly by the provision of patents and copyrights. The disadvantages or social cost of monopoly should be counter balanced by the benefits to the society while increasing innovation.
(The writer is a director/CEO of a pesticide marketing company) |
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