giorgi gvalia ilia state university conference presentation conference organizers: world...
TRANSCRIPT
Economic Aspects of Intellectual Property Rights:
Case of Georgia
Giorgi GvaliaIlia State University
Conference PresentationConference Organizers:
World Intellectual Property Organization (WIPO), Hungarian Intellectual Property Office (HIPO)
Hungary, BudapestApril 2013
IP Rights Protection Systems and Economic Growth: Some Theoretical Considerations
Brief Overview of Georgia’s Legislative and Institutional Framework Regulating Intellectual Property Rights
Current Situation in Regards of IP Rights Protection in Georgia
Major Challenges Hindering Efficient Functioning of IP Rights System in Georgia
Brief Overview of Georgia’s Economic and Political Profile
Macro, Meso and Micro Level Factors Hampering Innovative Development in Georgia
Georgia’s Technology Transfer Center (TTCG) – Link Between Private Sector and R&D Institutions
Concluding Remarks
Content
Major Trends in Research on IP Rights and Economic Growth
1. Strong IPR protection systems positively impact economic growth
2. Strong IPR protection systems negatively impact economic growth in transitional economies
3. IPR protection system is just one variable among complex set of variables affecting economic growth
4. The issue of causal direction - Do efficient IPR protection systems lead to economic growth or economic growth leads to efficient IPR protection?
IP Rights Protection Systems and Economic Growth: Some Theoretical Considerations
ENP AP Priority Area – Protection of Intellectual and Industrial Property Rights
The National Intellectual Property Center – Sakpatenti
Interagency Coordination Council for Copyright Protection – Established in 2010
Legislative and Institutional Framework Regulating Intellectual Property Rights
The Major Laws Regulating IP Rights System in Georgia:
1. The Patent Law of Georgia2. The Trademark Law of Georgia3. The Law of Georgia on Appellations of Origin and the
Geographical Indications of Goods4. The Law on Topographies on Integrated Circuits5. The Law on Copyright and Neighboring Rights6. The Law on Protection of New Varieties of Plants7. The Law on Border Measures Related to Intellectual
Property8. The Law of Georgia on Design
Legislative and Institutional Framework Regulating Intellectual Property Rights
Georgian legislation governing Intellectual Property Rights is harmonized with its European equivalent
The major problem – Video Piracy and the use of unlicensed software
According to Business Software Alliance and IDC Global Software Georgia is one of the largest user of pirated software
Current Situation in Regards of IP Rights Protection in Georgia
Problems in the enforcement of the legislation
Lack of public awareness
Passivity in the business sector
Low indicator of court disputes related to IP Rights
Low level of competence among judges in this area
Lack of trust towards the courts
Major Challenges Hindering Efficient Functioning of IP Rights System in Georgia
Georgia’s Soviet legacy and path dependency
Economic recovery and infrastructural development in the 2000s
The world’s top reformer in “ease of doing business” by the World Bank and International Financial Corporation
Despite the reforms poverty in both rural and urban areas still the major challenge
Georgia is currently at a stage of technology absorption rather than developing innovations
According to the Global Competitiveness Index 2012-2013, Georgia ranks 77th worldwide.
Brief Overview of Country’s Economic and Political Profile
0
20
40
60
80
100
120
GDP dynamics for 1990-2009 (1990=100%)
Source: Competitiveness of Georgia: Analysis and Perspectives, 2010
Year RANK
2012-2013 77
2011-2012 88
2010-2011 93
10
Global Competetivenss Index - Georgia
Source: World Economic Forum. The Global Competitiveness Report 2012–2013.
Country RANK
Azerbaijan 46
Georgia 77
Armenia 82
11
Global Competetivenss Index - Regional Comparison
Source: World Economic Forum. The Global Competitiveness Report 2012–2013.
Policy document defining national innovation policy/strategy is not elaborated yet
Poor involvement of the business community in innovation policy elaboration
Lack of education in the field of IPR
Lack of cooperation among universities, R&D institutes and private sector
Low output of patentable ideas (patent activity ratio 0.3)
Low technological level
Low state funding of R&D (around 0.2% of GDP, no data available for private sector investment)
Low qualified labor force
Macro, Meso and Micro Level Factors Hampering Innovative Development in Georgia
According to Sakpatenti by December 2011 a total of 45,380 trademarks had been registered
2038 Patents are currently in force (1021 foreigners, 1017 locals)
251 certificates have been issued for design
Majority of trademarks have been registered by large companies, notably by companies engaged in pharmaceutical sector
Pharmaceutical sector - Company ``Aversi Pharma``
Wine and Alcoholic Sector - Company ``Chateau Mukhrani``
Banking Sector - ``Liberty Bank``
Food Sector – Company ``Barambo``
Registration of Intellectual Property
Registration of Intellectual Property and GDP Growth
Source: Economic Policy Research Center (EPRC), Sakpatenti
TTCG could play significant role in efficiently linking private sector and R&D institutions
The major mission of the Center
1. Rise Awareness in the field of Technology Transfer2. Strengthening Innovative Culture in Georgia3. Strengthening of MSME Competetiveness
Success story: InnoGeorgia 2012 – Innovation and Technology Transfer Competition
Georgia’s Technology Transfer Center (TTCG)
TTCG
Government:Sakpatenti and Shota Rustaveli Science
Foundation (Min. of
Education)Business: Georgian
Employers Association,
Georgian Chamber of Commerce
and Industry, Georgian Small and Medium
Enterprise Association
Universities
Tbilisi State UniversityIlia State University
Batumi Shota Rustaveli
State UniversityAgrarian
UniversityKutaisi Akaki
Tsereteli State
University
TTCG Founders and possible partners
Other U
niversitie
s and
rese
arch org
anizatio
ns.
(Sta
te Te
chnica
l
University)
PMO, M
oESD,
MoES, GNIA, etc..
Other Business
organizations:
Business
Association of
Georgia, other
companies.
Foreign partners (TTCs, R&D institutions, etc)
33% Educatio
nal Sector
33% Private Sector
33% Public Sector
Decision Making at the TTC
No One Size Fits all Solution
IP Rights related challenges are multilayered and require complex approach
Better coordination between macro, meso and micro level actors is required
Importance of establishing National Innovation Council
Importance of establishing regional TTCs
More emphasis on public awareness rising activities
More funding for R&D activities
More emphasis on strengthening human capital
Concluding Remarks
