PATENTS AND INVENTIVE ACTIVITY

Many who oppose further strengthening of the protection already offered through the Indian Patents Act 1970, have been arguing their case essentially with a defensive posture that this law is appropriate for our current stage of development. This defensive argument is based on the assumption that the stronger patent regime is an essential condition for further progress in world S&T and by seeking a derogation on this regime for meeting the requirements of a latecomer country, we are demanding a concession from the developed countries. This paper argues that on the basis of both theoretical and empirical advances in the understanding of the determinants of technological change and innovation there is enough ground to question the belief regarding the effectiveness of stronger patents in promoting inventions, their disclosure, and commercialisation. Increased appropriability through the stronger patent regime is shown to result in reduced technological performance due to the adverse impact on spill- overs and higher social cost of the diffusion of innovations. Negative impact of the regime on disclosure is shown to distort research practice. Therefore, by opposing the new patent regime India is defending the longer-term interest of world S&T.