Protecting Intellectual Property Rights and Promoting Economic Growth

The recent economic downturn and the ensuing reordering of the global economic order has underlined beyond doubt the value of innovation in driving sustained growth. India now is firmly established as a player in the knowledge economy. Since the economic reforms began nearly two decades ago, the Indian economy has been undergoing an important transition—from a closed to an open one; to one where knowledge-based production of goods and services is commanding a significant portion of the output. India has also moved away from a static economy that was characterised by a status quo-ist government control to one where economic liberalism is the driving force, and one where innovation in products, processes, technologies and systems is critical for the profitable sustenance of productive entities. This structural transformation of the Indian economy is the result of many factors, and each has involved the interplay of international forces, influences, domestic abilities and efforts. The role of government, domestic industry, international firms, research institutions, non-government organisations, and, of course, private individuals has changed significantly in the past few years, and one expects this to continue in the future. The direction is towards lower government command and control in all sectors and the greater role of the market-place in creating the right set of incentives. All this is in the context of an economy that is becoming more and more integrated with the international economy, and where free movement of knowledge and technology goes hand in hand with the flow of financial and human capital. This article aims to look at the role that intellectual property rights play in promoting innovation and driving growth in the knowledge economy.