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2018 U.S. Chamber International IP Index

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2018 U.S. Chamber International IP Index The U.S. Chamber of Commerce’s Global Innovation Policy Center (www.theglobalipcenter.com) is working around the world to champion intellectual property rights as vital to creating jobs, saving lives, advancing global economic growth, and generating breakthrough solutions to global challenges. The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations. This report was conducted by Pugatch Consilum (www.pugatch-consilium.com) a boutique consultancy that provides evidence-based research, analysis, and intelligence on the fastest growing sectors of the knowledge economy. Authors of this report are Meir Pugatch, Rachel Chu, and David Torstensson. Professor Meir Pugatch, Managing Director and Founder Prof. Pugatch founded Pugatch Consilium in 2008. He specializes in intellectual property policy, management and exploitation of knowledge assets, technology transfer, market access, pharmacoeconomics and political economy of public health systems. He has extensive experience in economic and statistical modeling and indexing, valuation of assets and design of licensing agreements, and providing strategic advice to international institutions, multinational corporations, and SMEs from all sectors of the knowledge economy. In addition to his work at Pugatch Consilium, he is an IPKM Professor of Valorisation, Entrepreneurship and Management at the University of Maastricht in the Netherlands, as well as the Chair of the Health Systems Administration and Policy Division at the School of Public Health, University of Haifa in Israel. He is author and editor of an extensive number of publications and serves as a referee and editorial board member of numerous peer review journals. David Torstensson, Partner Dr. Torstensson specializes in innovation, tax and intellectual property policy, with a particular focus on the health care, information and communication technology and content industries. He has wide experience in policy and economic analysis, as well as data sampling and creation of strategic operational and advocacy plans. He is the author of a number of academic and commissioned reports and publications and is the co-author of all five editions of the U.S. Chamber International IP Index. Rachel Chu, Partner Ms. Chu specializes in biomedical innovation and international innovation policy. She has particular experience in sector- specific trend mapping, benchmarking of intellectual property environments and econometric analysis. She has authored several commissioned reports and articles published in academic and trade journals. Copyright © 2018 by the U.S. Chamber of Commerce. All rights reserved. No part of this work, covered by the copyrights herein, may be reproduced or copied in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, or information and retrieval systems—without the permission of the Chamber. 1. Foreword A spark of creativity can happen anywhere at any time. New songs, movies, and TV shows; new medicines, treatments, and cures; new fashion trends and new technology; even new businesses and industries – everything begins with an idea. But a great idea can only go so far. A great idea requires significant time and resources and ultimately market power to transform into a product with the power to change lives. A great idea needs an environment that encourages and incentivizes creators to bring their imaginations to life. Here, Intellectual property protections play a critical role. They give tangible value to ideas and empower people to earn a livelihood o of their creativity. They fuel economic growth, job creation, and access to creative and innovative output. Intellectual property protections beckon: Imagine it, and it can be so. The U.S. Chamber International IP Index, with its 40 discrete indicators covering policy, law, regulation, and enforcement, seeks to answer one simple question: Does a given economy’s intellectual property system provide a reliable basis for investment in the innovation and creativity lifecycle? Because with a strong intellectual property system, there’s no limit to what we might create next. David Hirschmann President and CEO Global Innovation Policy Center U.S. Chamber of Commerce uschamber.com/ipindex • I 40.00 20.00 30.00 25.00 35.00 10.00 15.00 0.00 5.00 Venezuela 6.85 9.53 Algeria Egypt 10.10 10.41 Pakistan 11.55 II Argentina • 11.60 U.S. Chamber International IP Index Sixth Edition IPIndex Sixth Chamber International U.S. Ecuador 12.03 India 12.14 Indonesia Scores Overall 2018 12.38 Nigeria 12.55 Thailand 13.19 Vietnam 13.71 South Africa 13.80 Philippines 14.28 Ukraine 14.38 Kenya Brunei 15.01 15.49 Saudi Arabia 15.72 Brazil 16.27 UAE 16.40 Peru 16.85 Chile Russia 17.29 Jordan 17.39 18.27 Colombia Turkey China Mexico Costa Rica Malaysia Morocco Taiwan Israel Poland Canada New Zealand Hungary Australia Spain Italy South Korea Switzerland Singapore Japan Netherlands Ireland Germany France Sweden UK U.S. Venezuela Algeria Egypt Pakistan Argentina Ecuador India Indonesia Nigeria Thailand Vietnam South Africa Philippines Ukraine Kenya Brunei Saudi Arabia Brazil UAE Peru Chile Russia Jordan Colombia 18.86 Turkey 19.08 China 19.35 Mexico 19.47 Costa Rica 19.92 Malaysia 21.94 Morocco 23.85 Taiwan 26.17 Israel 26.50 Poland 26.56 Canada 27.57 New Zealand uschamber.com/ipindex 30.21 Hungary 32.11 Australia 32.58 Spain 32.58 Italy 33.15 South Korea 33.42 • Switzerland III 33.45 Singapore 34.58 Japan 35.33 Netherlands 35.98 Ireland 36.54 Germany 36.74 France Sweden 37.03 37.97 UK 37.98 U.S. Economic Benefits of Improving IP Protection Findings from 23 Correlations Economies with robust IP protection (scoring above the median of the Inputs 2016 2017 2018 Index) on average tend to experience the following benefits compared with economies scoring below the median Financial Resources Research and development (R&D) 36% more likely to have in-house support by adequate investment for an idea or ..75 .70 .71 expenditure discovery Access to venture capital and 42% more likely that an idea or discovery will be supported by venture capital and .81 .77 .79 private equity funds private equity Foreign direct investment (FDI) .78 .78 .80 53% more attractive to FDI due to better macroeconomic indicators attractiveness Biomedical FDI .68 .67 .72 15 times more clinical trial activity Enabling Conditions Human capital .80 .82 .82 Over 6 times more highly skilled researchers in a given labor force Increase in high-value jobs .80 .72 .67 Percentage of high-value workforce almost doubled Access to advanced technologies .83 .83 .81 26% more likely to benefit from access to latest technologies 37% more likely to fully leverage information and communications technology Network readiness .82 .82 .83 (ICTs) Likely to provide up to 3 times wider access to new music through legitimate and Access to licensed music outlets n/a .78 .79 secure platforms Consumption of audiovisual .79 .73 .72 Likely to generate nearly 3 times more theatrical screenings of feature films content Access to video content .64 .61 .66 Generates twice as many video-on-demand and streaming services Coecient Outputs Benefits from IP rights 2016 2017 2018 Competitiveness Economic competitiveness n/a n/a .79 Economy 20% more competitive Overall business environment .77 .80 .78 Roughly 60% more receptive to entrepreneurship Ability to incorporate new technol- n/a n/a .80 24% more agile at incorporating new technologies and improving processes ogies and improve processes Value Added and Creativity Growth of high-tech sectors .77 .80 .75 Production of up to 80% more knowledge and technology outputs Added value of licensed software .85 .85 .82 Twice the contribution to gross domestic product (GDP) Online creativity .81 .85 .84 Generates almost 3 times more online content Innovation output .85 .88 .86 75% more knowledge-based, technological, and creative outputs Inventive activity n/a n/a .68 Over 500 more high-value inventions Biotech innovation .83 .77 .78 Twice as likely to provide environments that are conducive for biotech innovation Development of biotech therapies n/a .70 .75 Roughly 12 times more clinical research on biologic therapies Cutting-edge clinical trial n/a .73 .76 21 times more early-phase clinical trials Creative outputs .80 .86 .85 62% more likely to have larger and more dynamic content and media sectors IV • U.S. Chamber International IP Index Sixth Edition 2. Executive Summary The sixth edition of the U.S. Chamber become clear the countries stand side- International IP Index “Create” is a blueprint for by-side as global leaders in IP protection countries seeking to become true knowledge- and enforcement. based economies through an eective intellectual property (IP) architecture. Every • Throughout 2017, courts utilized recent individual economy represents a blank canvas, legislative changes to bolster protection with policymakers using broad strokes in for copyrighted content online. In the form of IP policy to paint their country’s Australia, the federal court applied the innovative and creative futures. 2015 Copyright Act in five landmark cases to secure injunctions against Internet The Index benchmarks economies using 40 service providers (ISPs) hosting pirated indicators in eight categories. New indicators content. A number of EU economies – in the areas of commercialization and systemic including Ireland, Italy, and Sweden eciency provide a more complete, bottom- – and the UK also applied existing to-top picture of the investments countries legislation and judicial precedents to are making in support of domestic innovation block access to pirate websites, marking and creativity. The 2018 Index includes five a significant step forward in anti-piracy new economies – Costa Rica, Ireland, Jordan, eorts across the continent. Morocco, and the Netherlands – bringing the total number of economies benchmarked • The majority of the economies to 50.
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