Economic Growth In South Korea

1.ECONOMIC GROWTH- In the United States, an estimated 30 to 40 percent of the gains in productivity and growth achieved in the 20th century can be traced to economic innovations in their various forms. . From 1960 to 2000, economic output and per capita incomes grew more than three times faster in South Korea, with relatively few natural resources, than in Brazil, a country with abundant natural resources. Much of the difference can be traced to Korea’s relative openness to technological and other innovations developed elsewhere and brought to Korea through imports, foreign direct investments (FDI) and licensing agreements, as well as to Korea’s very strong commitment to educational opportunities that prepared workers to adapt to new technologies

ATTRACT INVESTORS- One major study, for example, examined data from 95 countries from 1960 to 1988 and found that IP rights had a significant effect on growth in all cases, with the greatest effects occurring in the high-income countries where the innovations were developed and low-income countries where strong patent protections encouraged the importation and inward FDI of innovations. These results were confirmed by another study conducted in 2004 which examined 80 countries over four time periods covering 1975 to 1994. The researchers found that strong IP protections stimulated even greater growth in countries with low per capita incomes, principally by encouraging FDI and imports from advanced countries, than in countries with high per capita incomes. FDI is likely to replace exports as the mode of transfer when the products are R&D-intensive and the market is large, the costs of conducting the trade and transporting the goods are high, and the costs of establishing new plants are low. with every one-percent increase in the degree of patent protection in a developing country expanding the stock of U.S. investment in that country by 0.45 percent. Dr. Aparna Mathur and I measured the link between IP rights and FDI flows across many nations for the years 2008-2012. We used the Ginarte-Park (G-P) index of patent rights, a measure developed by staff from the World Bank and American University that rates countries on five measures of patent protection: 1) the breadth of

The benefits to workers and firms around the world from using the Windows operating system, for example, far exceed Microsoft’s profits, and HIV medications provide much greater benefits to those who use them and their societies in productive lives prolonged or saved, than the profits earned by the firms that develop and patent them. As two analysts put it recently, “most of income above subsistence is made possible by international diffusion of knowledge.”

5. Finally, a decision by the CCI to issue a compulsory licence could have other implications. Such decisions may cause IP-reliant firms to either abandon operations in India or refrain from entering the Indian market altogether.

COMPETITION- The Natco v Bayer decision has already resulted in an adverse perception of the Indian pharmaceutical industry and may adversely impact foreign investment in this sector. Pharmaceutical countries may find great risk in operating in India if competition intervention is used to remedy social inequity rather than to ensure a competitive market