Tailoring patent policy for developing economies

As intellectual property chapters are now regularly part of free trade agreements, countries need to have a clear view of what elements of a patent system will encourage domestic innovation and what elements will simply raise the cost of goods and services. Drawing on the range of empirical material available about patent systems, this paper presents an initial analysis of critical design elements to maximise economic welfare while implementing patent policy in developing and technology-importing economies. Key issues considered are: patent policy objectives; limitations to patentable subject matter; the height of the inventive step; the privileges provided by patents; incentives, penalties and strategic gaming; and transparency issues particularly oversight, evaluation and audit. Development of a set of policy principles which align with maximising national economic well-being goes some way to meeting the goals of the Development Agenda Group put forward in the context of WIPO's Committee on Development and Intellectual Property. Such a set of principles would also play a useful role is assessing the value of patents in trading for improved market access for goods and services thus assisting an evidence-based approach to trade negotiations.