February 2001
Why Foreign Inventors want to Patent in the US
by Margalit Edelman
A new study soon to be released by the Hispanic American Center for Economic Research has found that both the high level of intellectual property protection and the unparalleled access to the US market provided by an American patent offer foreign inventors the greatest incentives to patent in the US.
Ninety-three percent of the inventors surveyed for the report, Inventors, Innovation and Intellectual Property, agreed with the statement, "I patented my invention in the US because the US provides an extremely high level of intellectual property protection." About one third of respondents also agreed that inadequate patent protection in their home country influenced their decision to patent in the US.
One Argentinean scientist explained his decision to patent an invention in the US: "There is no doubt that intellectual property is better [in the US] and you are better protected. It is difficult to protect it here [Argentina]; some things are copied a lot."
Nearly 90 percent of the inventors agreed that they chose to patent in the US because that nation offers extensive licensing and commercial possibilities.
For the Indian inventor of a hybrid plant, a US patent was indispensable in order to promote "... protection and popularization of our invention among global communities."
A majority of the inventors also agreed that the US patent process, particularly the speed and reputation of the US Patent and Trademark Office's technical examination, affected their decision, while about 22 percent said that an American co-inventor was a factor in the choice. The survey clearly demonstrates that a US patent offers two things an inventor needs to translate an innovative idea to a profitable product: intellectual property protection and market access.
While they praised the US system and the opportunities it provides, many of the inventors also argued that their countries must promote innovation if they want to participate in the global economy. They suggested more public-private research partnerships, intellectual property protection improvements backed up by a de-politicized patent office and judiciary, and efforts aimed at increasing public awareness of the role inventive activity plays in generating growth and advancing modernization.
The study specifically targeted inventors in three countries often cited by the United States Trade Representative for poor intellectual property protection: Argentina, India, and Egypt. Inventors in Mexico, a country which implemented intellectual property reforms as a result of obligations under the NAFTA treaty were also surveyed, as were a random sampling of Latin American inventors.
Undoubtedly, secure patent rights influence not only the decision about whether to seek a patent, but also the amount of inventive activity. Thus, there are ways to encourage inventors, to reward them for their efforts and to ensure that their inventions benefit society. In a world increasingly dependent on knowledge and technology, those countries that best support inventors and innovation have the most to gain. There is no set formula to establishing an environment that will produce the next renaissance, but there are some essential ingredients: solid intellectual property protection, institutional infrastructure, rule of law, and a civil society that recognizes the importance of inventors. No country, regardless of its size or situation, holds a monopoly on inventiveness. Nonetheless, those nations that view their inventors as valuable resources and treat them as such are most likely to see an explosion of innovation in the twenty-first century and reap the resulting benefits.
Margalit Edelman, formerly an analyst with the Alexis De Tocqueville Institute in Virginia, is a Washington-based reporter for AP Newswire Services. She has a B.A. from Brown University.
info@fraserinstitute.ca
4th Floor, 1770 Burrard Street, Vancouver, BC, Canada, V6J 3G7
Tel: (604) 688-0221 Fax: (604) 688-8539 Book Orders: 1-800-665-3558 ext. 580
You can contact us at the above email address for any comments or information requests. Please report any dead links or technical problems.