2015 GIPC International IP Index Fact Sheet | U.S. Chamber of Commerce

2015 GIPC International IP Index Fact Sheet

Wednesday, February 4, 2015 - 3:15pm

Robust Intellectual Property (IP) environments create unlimited potential to attract investment, fuel economic growth, and foster innovation. By providing a roadmap to a strong IP environment, the GIPC’s International IP Index gives governments a tool with which to prioritize legislative, regulatory, and administrative reforms to achieve the greatest possible expansion of their national innovative potential.

The 2015 GIPC Index maps the IP environment of 30 economies, comprising nearly 80 percent of global gross domestic product (GDP). Economies’ GIPC Index scores are evaluated based on 30 indicators indicative of a robust IP system. The result is a rigorous statistical tool that policy makers and industry leaders can use to evaluate the strength of an economy’s IP regime. 

Learn more and view the interactive map at GIPC's International IP Index site.

KEY FINDINGS

Recognizing the vast benefits of strong IP protections, a number of economies took steps to improve their IP system over the last year:

  • Canada acceded to the WIPO Internet Treaties.
  • In India, the Modi Administration’s national IPR think tank recently released the Draft National IPR Policy, which recognized the fundamental links between IP, innovation, and the successful development of innovative products. Additionally, the formation of a high-level IP working group as part of the Trade Policy Forum has the potential to elicit measurable and sustainable changes to India’s IP system.
  • Indonesia passed copyright legislation which included a notification system giving the government the power to block infringing websites.
  • Parties to the Trans-Pacific Partnership (TPP), including Australia, Mexico, and Singapore, took steps to improve IP rights related to patentability and copyright.

Most economies included in the GIPC Index have ample room to further strengthen their IP laws in order to harness the economic benefits that intellectual property provides:

  • Canadian courts continue to apply a heightened standard for patent utility, which imposes an arbitrary patentability test on inventions.
  • Several economies in the GIPC Index, including France, New Zealand, South Africa, Thailand, and the UK, are considering introducing plain packaging legislation.
  • TPP negotiating countries Chile and Peru have yet to implement key provisions of existing free trade agreements (FTA) with the United States.
  • Although the IP environment in India has improved slightly, patentability requirements, renouncing the use of compulsory licenses as a commercial tool, and strengthening the copyright framework to address online and physical piracy would deliver additional benefits.
  • While Switzerland scores quite high on the GIPC Index overall, significant gaps in Switzerland’s copyright legislation create a challenging environment to combat copyright infringement.
  • The United States scores poorly for a top-tier country on enforcement indicators due to ineffective border measures to seize counterfeit goods.

The 2015 GIPC Index includes first-of-its-kind data on correlations between that strong IP protections and thriving innovative economies.

Specifically, the GIPC Index identified a positive relationship between:

  • Strong IP rights and R&D expenditure: Companies in economies with advanced IP systems are 40% more likely to invest in R&D.
  • Strong IP rights and high-value job growth: Economies with favorable IP regimes employ more than half their workforce in knowledge-intensive sectors.
  • Strong IP rights and FDI: Strong IP protections in the life sciences sector account for 40% of life sciences investment. Additionally, economies with beneficial IP protection see 9-10 times more life sciences investment than countries with weak IP protections.
  • Strong IP rights and innovative activity: Economies with robust IP environments yield 50% more innovative output compared to countries with IP regimes in need of improvement.