The International Patent Propensity Divide

Abstract

This Article contributes conceptually and empirically towards an innovation-based growth theory for developing countries. The proposed theory adheres to the growing importance given by theoreticians and policy makers alike to re-visiting the neoclassical economics “one size fits all” innovation policy propagated by current international intellectual property instruments. In arguing for an innovation-based growth theory, the Article offers a unique statistical country panel data model for comparing patent propensity rates as a proxy for national innovation over sixteen years (1996–2011) between two groups of countries straddling the developing-developed countries divide: “Emerging Economies” and “Advanced Economies.” The International Monetary Fund has labeled certain developing countries as “Emerging Economies,” which are hotbeds of meaningful innovation within the developing world, and others as “Advanced Economies,” which includes most of the countries belonging to the Organization for Economic Co-operation and Development.