46110329_Tsinghua_final_02.pptx

The Knowledge and Technology StructureChap.10

International Political Economy

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William Baumol, Robert Litan, and Carl Schramm. Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity. New Haven, CT: Yale University Press, 2007.

Michele Boldrin and David Levine. Against Intellectual Monopoly. Cambridge: Cambridge University Press, 2008.

Creative Economy Report 2008. UNCTAD, 2008. At: http://www.unctad.org/en/docs/ditc20082cer.cn.pdf

Carolyn Deere. The Implementation Game: The TRIPS Agreement and the Global Politics of Intellectual Property Reform in Developing Countries. Oxford: Oxford University Press,2008.

Intellectual Property Rights: implications for Development. UNCTAD-ICTSD, 2003. At http://www.iprsonline.org/unctadictsd/policyDpaper.htm

Suggested ReadingsChpt.10

Sector 1

Sector 2

Sector 3

Content

IPE of Innovation and Technology Advancement

IPE Of International Property Rights

International Knowledge Structure: Actors and Rules

Chpt.10

A. The international knowledge structure

B. Rules

C. Attitudes of each actors who shape and be affected by the international knowledge structure

D. The significance of the international knowledge structure

1. The International Knowledge Structure: Actors and Rules

Chpt.10

Definition: a web of rules and practices that determine how knowledge is generated, commercialized, and controlled.

Knowledge-----an umbrella term, including ideas, technology, information, and intellectual property.

Definition: that govern the flows of knowledge around the world.Significance: the rules create right, privileges, incentives, prohibitions, guarantees, and penalties for countries, businesses, and consumers. They determine who can get what advantages and on what terms from knowledge.

The 4 sets of rules: 　　 National laws and regulations　　 Bilateral and multilateral treaties　　 Business practices　　 Shared norms or understandings

A. The international knowledge structure-----------

B. Rules------------

1.1 International Knowledge Structure: Actors and Rules ---(1)

Chpt.10

Individuals: mostly as consumers of knowledge They tend to view knowledge as a basic human right, and often resist those rules in the way of their access.Companies: as profit-making entities, to produce and commercialize knowledge They are keen to control the knowledge they produce and constantly need technology to innovate and compete.States: They generally want to foster technological development and preserve knowledge-based advantages over other states.IOs: They help countries access knowledge, and teach countries how to cooperate with others.

-----it interacts with the other 3 IPE structures and conditions all IPE relationships.

C. Attitudes of each actors who shape and be affected by the international knowledge structure

D. The significance of the international knowledge structure---------------

1.2 International Knowledge Structure: Actors and Rules ---(2)

2. IPE of Innovation and Technology Advancement

Chpt.10

2.2. Government Innovation Politics in Developed Countries

2.3 Closing the knowledge and Technology Gap

2.4 Struggles over Education and Skilled Workers

2.1. The Context

2.1 The Context Chpt.10

• Economic liberals believe that regardless of a country’s level of development, private companies should be the primary drivers of innovation through R&D investment protected by IPRs.

• Mercantilists point out the vital importance of governments in creating the institutions and policies that make an economy able to generate, commercialize, and control new knowledge.

• Structuralists contend that states and markets appropriate the knowledge of workers and indigenous people, distributing the fruits of innovation unfairly and inequitable.

In all, Knowledge as a double-edged sword---------it is difficult to balance the interests of producers and consumers of knowledge.

A key historical and theoretical question for political economists----

What have been the appropriate roles for governments and market actors in fostering innovation and accumulation of knowledge?

2.2. Government Innovation Politics in Developed Countries

Chpt.10

Technologically advanced countries----”keep-up” rolesThey recognize that technological growth has historically been a key determinant of

economic growth.

Their measures:

　 　 A “triple-helix”---a university-industry-government relationship that accelerates innovation

State projects (the Manhattan Project, the Apollo Project)

　 　 Provide “venture capital” to small private firms with promising new technology

　 　 Government budget for “R&D”

　 　 Public procurement

　 　 Tax rebates

　 　 Help private sector actors cooperate with others and create uniform standards

　 　 Prevent the diffusion of some forms of advanced technology to other countries

　 　 Export controls

　 　 ........

2.3. Closing the knowledge and Technology Gap

Chpt.10

• A. Competing in Schumpeterian industrie, and “Gales of creative destruction”---destroy established

monopolies and create new dominant firms. Michael Porter, The Competitive Advantage of Nations.

• B. Interactions of product and process innovation 　　 E.g the product life cycle　　• C. Global value chain E.g Taiwan and Korea

Many processes of innovation and technological change occur without any specific state role, but as a result of inherent in global market.

Two ways promoting market diffuse technology around the world.

To create national champions, developing states can deliberate industrial policy and make a strategic trade policies, in which way to transfer of technology.

Chpt.10

Besides the spending on R&D and good institutions, innovative societies also require well-educated

and skilled professionals who can create innovative businesses and generate valuable intellectual

propedrty.

The U.S. has had the best of both worlds since World War II: a strong educational system and the ability to attach highly skilled workers.But gradually, the land of opportunity has a lot of new competition.

Two involved policies:

　　 Higher education policies

　　 Visa policies 　 　

2.4. Struggles over Education and Skilled Workers

3. The IPE Of International Property RightsChpt.10

3.1 The Public of IPRs in Developed Countries

　　3.2 North-South Conflicts over

Intellectual Property Rights

3.3 Debated over Patented Medicines

3.4 Struggles over Traditional Knowledge

3.5 Perspectives on Intellectual Property Rights

Chpt.10

issued by a government and confer the exclusive right to make, use, or sell an invention for a period.

While patent rights are not unlimited------governments reserve the right to override patents in some circumstance:

　　 Patent holders abuse their market power　　 Government can issue a compulsory license　　 National emergency　　 .......

“Expression”: books, movies, television programs, music, magazines, photographs, softwares,databases....

Lengths of copyright protection have grown longer in the last 100 years while the value of trade in copyrighted products has mushroomed.

Copyrights are necessary to encourage innovation.

A. Patents------

B. Copyrights----protect the expression of an idea, not the idea itself.

3.1 The Context ---(1)

Chpt.10

It can be renewable.

Trademarks are essential for the efficient functioning of the market.

Trade secrets: any information used in a business that has economic value and that the business actively tries to keep secret.

Geographical indications: identify a good as coming from a specific locale with some characteristic attributable to that locale.

Publicity rights:the names , images, or identifying characteristics of famous persons.

C. Trademarks-----signs or symbols (including logos and names) registered by a manufacturer or merchant to identify goods or services.

D. Other kinds of IPRs

3.1 The Context ---(2)

Chpt.10

The U.S., the EU, and Japan have largely shaped the global rules governing IPRs. They have defined the nature and scope of IRPs, signed international agreements, and set up multilateral institutions to enshrine the rules in international relations.

They seek to enforce these rules and expand them, using political power, international diplomacy, and threats.

Much of the support for and resistance to strong IPRs is coming from powerful business, scholarly, and consumer groups of these countries.

The U.S. aas taken the lead in promoting the protection of the IPRs, under pressure to do so in t

he last 25 years from U.S. business.

They were very successful in framing IPRs as rights---not government-granted privileges---and

in spreading a discourse about the dangers of “piracy” to free markets.

3.2 Public of IPRs in Developed Countries -(1)

Chpt.10

A set of enforceable international minimum standards for IPRs.

　　 In 1980s, the Berne Convention 　　 In 1887, the Paris Convention 　　 In 1967, the World Intellectual Property Organization (WIPO) 　　 During the Uruguay round, a new treaty on TRIPs 　　 In 1988, Super 301 　　 The Anti-Counterfeiting Trade Agreements

Developed countries especially liked TRIPs because it has a mechanism for binding dispute resolution and required countries to enforce IPRs.

Although developed countries are cooperating in important ways, conflict between and among them over IPRs still exists to a significant degree, given the centrality of knowledge and technology to competitive advantage.

• 　 databased protection• 　 Fashion designs• 　 GIs

3.2 Public of IPRs in Developed Countries -(2)

3.3 North-South Conflicts over Intellectual Property Rights

Chpt.10

The oppositions: to the minimum standards for protection of IP in TRIPs.

　 To craft their own IP standards consistent with their level of development.　 To redefine some of the guiding principles of IP law to include promotion of human rig

hts, public health, education, and cultural autonomy.　 To extend IPRs to forms of knowledge, including biodiversity and traditional knowledg

e.

Developing countries have enunciated an alternative understanding of the goal of IPRs as promotion of development.

Objectives: the provisions of TRIPs that hamper development should be resisted and that new development-enhancing policies should be incorporated into IP laws.

These objectives are being pursued through the Development Agenda in WIPO.

Developing countries have increasingly opposed the IPR norms and policies that developed countries promote.

3.4 Debated over Patented Medicines

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One of the most successful efforts to challenge the TRIPs agreement has been in the area of compulsory incensing, parallel imports, and access to medicines.

A compulsory incense-----a license a state grants to a local party such as a private company or government body, with or without the consent of the right holder, to produce and sell a good under patent.

parallel imports-----imports of patented goods without the permission of the patent holder.

access to medicines: HIV/AIDS assistance in developing countries.

3.5 Struggles over Traditional KnowledgeChpt.10

• Traditional Knowledge (TK): the accumulated knowledge and pratices of indigenous or local communities as they relate to such things as plants, plant uses, agriculture, land use, folklore and spiritual matters.

Colonial powers historically and Northern companies today often appropriated TK for their own selfish purposes.

The economic value of TK is potentially very high.

Developing countries seek to valuerize their control over biodiversity and medicinal plant uses.

Also many countries are making a novel effort to give new cultural rights to indigenous peoples.

3.6 Perspectives on Intellectual Property Rights --(1)

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Economic liberals tend to agree that IPRs help some markets function more efficiently, they are aware that IPRs are essentially government-granted, temporary monopolies that can sometimes undermine competition.

Mercantilists recognize the need for the long arms of the state in IPRs, they note that whether a particular state will find it in its interests to strongly protect or routinely violate IPRs depends on its level of development and technological capacity.

Structuralists tend to see IPRs as a means for powerful countries and capitalist enterprises to extract rent from and exploit the less powerful, but they recognize some new forms of IPRs as actually empowering and protecting weak social actors.

3.6 Perspectives on Intellectual Property Rights --(2)

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Several other categories of views on intellectual property:

Constructivism: it help us explain how we define IP and frame the stakes involved.

“balancing”: it wants to strike an appropriate balance between individual rights, communal rights, and national rights.

Abolitionists: they want to see the elimination or radical reduction of IPRs.

Economist: Michele Boldrin and David Levinr

Discussion Questions

Affairs,February2011

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What are intellectual property rights, and why are they important in today’s global markets?

Compare and contrast the mercantilist, liberal, and structuralist views of IPRs.

Describe the nature of the TRIPs provisions. Provide arguments both for and against stronger IPR protections in poor countries.

Provide 2 examples of piracy and/or counterfeiting. What countries have been identified as major sources of pirated or counterfeited products? What do you believe are the best ways for developed countries to deal with violations of IPRs?

What are some of the most important ways that countries can nurture an innovative and technologically advanced society?

Chpt.10

110329_Tsinghua_final_02.pptx

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