Intellectual Property contributes immensely in global innovation, contributing to the national as well as state economy. There has been times where considerable debate on the impact on developing countries of tightening Intellectual Property Rights. A country’s openness to international trade seems also to affect the relationship between IPRs and growth. The evidence suggests that stronger IPRs have a significant and positive impact on growth in more open economies.
Society reaps the following four benefits from granting such monopoly rights to innovations:
- The stimulation of innovations by private agents, the primary social benefits of IPR.
- The use of new knowledge in productive activity.
- The greater dissemination of new knowledge to other agents.
- The stimulation of innovations by other enterprises