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Modelling the TRIPS effect on R&D activities

Selma DELLAGI student laureate
dellagi_selma@yahoo.fr

°1978 Tunesia
Master’s in mathematics, Université de Tunis, Tunesia, 2001

Modelling the TRIPS effect on R&D activities

The Uruguay Round introduced, for the first time in the history of the General Agreement on Tariffs and Trade (GATT), multilateral negotiations on “trade related intellectual property rights”. Under strong pressure by the industrialized countries, a specific agreement on the definition and enforcement of such rights became part of the Final Act of the Round: the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement).
The negotiation on TRIPS was presented by developed countries as a necessary condition to promote innovation and to stimulate technology and capital flows to developing countries.
Given the wide coverage of the TRIPS Agreement and the disparities existing among developed and developing countries, it is very difficult to make a quantitative assessment of its likely economic impact.
In the above context, the study undertaken by Selma Dellagi provides a valuable insight on the effects of the TRIPS Agreement on innovation activities in less developed countries.
A rigorous modelling approach helps to identify a set of optimal R&D strategies to be adopted by firms in developing countries. In this model, the incentives of firms to undertake R&D activities are heavily dependent on the level of tightening of sanctions for violating the TRIPS Agreement.
The promotion of innovativeness and creativity is certainly essential in any developmental strategy, particularly in order to enhance international competitiveness of firms. This modelling effort, although limited by some restrictive assumptions, can be of help in the design of policies for local industries to cope with the introduction of more stringent intellectual property rights rules.
 

report by Prof. Dr. G. Calfat, Institute of Development Policy and Management, Universiteit Antwerpen, Belgium