Inventors and innovators make life better by coming up with new technologies and products that turn out to be crucial in solving societal problems. Development of chemicals and gadgets that have made a significant impact in changing the world for the better is commendable. Intellectual property rights, IP, serve as a method of giving credit and sole control of the innovation to the innovator. However, these rights might wreak havoc in different parts of the world due to different factors such as the cost and volumes of production of the genuine product. This factor is crucial, and could easily draw a line of social exclusion between those who can afford and those who cannot. For instance, in 1998, 39 American firms sought to have South Africa stop importing generic products, which did so for the sake of public health protection. They accused South Africa of violation of TRIPS. In 2001, the United States threatened to release licenses for generic production of the Antibiotics that could cure anthrax [Dae11]. In this regard, IP rights promote inequality the affluent and the poor. Seeking to understand the topics involving international property rights guided my selection this topic.
Economic growth, a macroeconomic concept, is the increase in an economy’s capacity to offer services and produce goods (LEL, 2015). Different factors influence the growth of an economy; among them being the available capital and innovativeness of its citizen. Intellectual property rights offer a way for a company or individual to control the idea and products that surround the topic.
IP, if restricted, could help developed countries to diversify their exports and hence a more favorable trade balance. Conversely, the developing nations could provide their citizens with most commodities that the country knows not from where it comes. The developing nations could set ‘loose’ rules that encourage foreigners to invest in the country. From the ‘U-shaped’ model, a developing country could move from supporting foreign innovations gradually to local ventures, which promotes the economic stand of the country in terms of employment, foreign exchange, if the product is exported and increased GDP; hence the economy.