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Charting a Course of TRIPS Patent Protection in a Fair and Balanced

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Charting a Course of TRIPS Patent Protection in a Fair and Balanced Innovation as Capability and Freedom: Charting a Course of TRIPS Patent Protection in a Fair and Balanced Global Innovation System Sa Yu Thesis submitted to the Faculty of Graduate and Postdoctoral Studies in partial fulfillment of the requirements for the Doctor of Laws (LL.D.) degree Faculty of Law University of Ottawa © Sa Yu, Ottawa, Canada, 2013 Table of Contents Abstract ......................................................................................................................................... vii Acknowledgements ...................................................................................................................... viii Chapter One: Introduction ............................................................................................................... 1 1.1 TRIPS in an Innovation and Development Context ....................................................... 1 1.2 A Two-Pronged Approach to Innovation and Development ....................................... 10 1.2.1 Innovation Capability Approach to Development ................................................ 11 1.2.2 Ensuring Equal Innovation Opportunity and the Freedom to Innovate ................ 13 1.2.3 Integrating TRIPS into a Fair and Balanced Global Innovation System .............. 14 1.3 Research Methodology ................................................................................................. 16 1.4 Thesis Structure ............................................................................................................ 17 Chapter Two: The Values and Dynamics of Innovation ............................................................... 21 2.1 The Definition of Innovation ....................................................................................... 22 2.1.1 The Technological Dimension of Innovation ....................................................... 23 2.1.2 The Commercial Dimension of Innovation ........................................................... 25 2.1.3 The Social Dimension of Innovation .................................................................... 27 2.1.4 A Purpose-Centred Definition of Innovation ........................................................ 28 2.2 The Public Good Character of Innovation ................................................................... 29 2.2.1 Characteristics of Public Goods ............................................................................ 29 2.2.2 Innovation as an Intrinsic Public Good ................................................................. 37 2.2.3 The Distributive and Equalizing Effects of Innovation as a Global Public Good 41 2.3 The Dynamics of Innovation Models and Decentralization of Innovation Capability 45 2.3.1 The Changing Innovation Environment: Innovating Wikily ................................ 46 2.3.2 The Open and Collaborative Innovation Model .................................................... 50 2.3.3 The Cumulative Innovation Model ....................................................................... 53 ii 2.3.4 The User Innovation Model .................................................................................. 56 2.3.5 Indigenous Innovation ........................................................................................... 58 2.4 A Multi-faceted System of Innovation ......................................................................... 60 2.5 Innovation Systems in Developing and Developed Countries ..................................... 66 2.6 Conclusion .................................................................................................................... 68 Chapter Three: An Innovation Capability Approach to Development ......................................... 69 3.1 Introduction .................................................................................................................. 69 3.2 Evolving Development Paradigms ............................................................................... 75 3.2.1 The Traditional/Quantitative Conception of and Economic Approach to Development .................................................................................................................. 76 3.2.2 The Qualitative Conception of and “Right and Equality” Approach to Development .................................................................................................................. 80 3.2.2.1 Development as a Human Right .................................................................... 82 3.2.2.2 Development as Substantive Equality ............................................................ 87 3.2.3 Conclusion ............................................................................................................. 92 3.3 Capability Approach to Development .......................................................................... 93 3.3.1 Sen’s Development as Substantive Freedom to Achieve Functionings ................ 93 3.3.2 Nussbaum’s Central Human Capabilities Approach ............................................. 97 3.3.3 The Wide Adoption of Capability Approach in Development Practice ............. 100 3.3.4 The Evaluation of Capability Approach and its Missing Innovation Dimension 102 3.3.5 Conclusion ........................................................................................................... 104 3.4 Proposing an Innovation Capability Approach to Development ............................... 105 3.4.1 The Importance of Innovation Capability to Development ................................ 105 3.4.2 Innovation Capability and its Relationship to Capability Approach .................. 111 3.5 Substantive Equality of Innovation Capability Principle ........................................... 115 3.5.1 Equality of Innovation Opportunity .................................................................... 120 3.5.2 Neutrality of Innovation Models ......................................................................... 122 iii 3.5.3 Accessibility of Innovation Commons ................................................................ 123 3.5.4 Dignity of Entrepreneurial Spirit ........................................................................ 126 3.5.5 Respect for Indigenous Innovation ..................................................................... 126 3.6 Freedom to Innovate as an Intrinsic and Instrumental Freedom ................................ 128 3.7 Conclusion: Bridging Global Innovation Divide for Equitable Development ........... 130 Chapter Four: Patent as Part of an Innovation System ............................................................... 132 4.1 A Normative Analysis of Patent’s Role in an Innovation System ............................. 135 4.1.1 The Overview and Justifications of the Patent System ....................................... 135 4.1.2 The Nature of Patent as a Bargain to Balance Access and Innovation ............... 139 4.1.3 The Purpose of Patent as a Device to Promote Innovation Capability and Freedom ...................................................................................................................................... 143 4.2 The Effectiveness of Patent in Enhancing Innovation Capability ............................. 145 4.2.1 The Measurement of Innovation Capability ....................................................... 146 4.2.1.1 The Intellectual, Technological, and Financial Dimensions of Innovation Input ......................................................................................................................... 147 4.2.1.2 The Economic and Non-Economic Dimensions of Innovation Output ....... 149 4.2.1.3 The Efficiency of Innovation Market ........................................................... 154 4.2.2 The Relationship between Patent and Innovation Capability ............................. 156 4.3 Integrating the Patent System into an Innovation System ......................................... 167 4.3.1 Distributing Innovation Opportunities Fairly ...................................................... 169 4.3.2 Steering Innovation Resources Neutrally ............................................................ 176 4.3.3 Conserving Innovation Resources for an Accessible Innovation Commons ...... 181 4.3.4 Honoring the Dignity of Entrepreneurial Spirit and Fostering Entrepreneurship 185 4.3.5 Reconciling Patent with Indigenous Innovation ................................................. 188 4.4 The Design of the Patent System: Focusing on Innovation Capability and Freedom 192 4.5 Conclusion .................................................................................................................. 198 Chapter Five: TRIPS Patent Regime as Part of a Global Innovation System ............................. 200 iv 5.1 The Globalization of the Innovation Paradigm .......................................................... 203 5.1.1 The Patent System at the National Stage ............................................................ 204 5.1.2 The Multilateral Stage—The Paris Convention .................................................. 209 5.1.3 The Global Trading Stage—The TRIPS Agreement .......................................... 215 5.2 The TRIPS Regime of Innovation Promotion ............................................................ 219 5.2.1 An Overview of the TRIPS Patent Regime ......................................................... 221 5.2.2 The Neoliberal Approach and Market Fundamentalism of the TRIPS Patent Regime ........................................................................................................................
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