Knowledge, intellectual property as veritable tools for economic growth — Opinion — The Guardian Nigeria News – Nigeria and World News

Over the years, economists have tried to provide explanation to the factors behind accelerated and sustainable growth of some economies while others remain comatose or stunted in growth. In other words, some countries are rich but others are poor. Among the indices that have attracted attention include governance and management mechanisms, gross domestic product (GDP), general price level and public finances, social welfare, life expectancy and child mortality, population and health, international trade, amenities, digital economy, law and orderliness.

Invariably, many European, American and some fast-developing Asian countries were found to be far ahead of their African counterparts. Little wonder, therefore, that the challenges of ‘brain drains’ and ‘japa’ syndrome have continued to beset Africa.

That Africa is less developed is, however, not because it is less endowed. In fact, in terms of geographic features (including climate), natural resources and youthful workforce, Africa can be said to be at the forefront. A huge proportion of world’s resources (renewables and non-renewables), 40 per cent of the world’s gold, 90 per cent of its chromium and platinum, the largest reserves of cobalt, diamonds, platinum and uranium in the world are located in the continent of Africa. Yet Africa is perhaps, best described as developing, with potential as against actual greatness.

The fact, however, is that the abundant resources in Africa are not the true drivers of growth and development, but rather knowledge and innovation. Development is attracted through mobilisation and deployment of sound knowledge and innovative actions. In other words, what propels economic growth is not just presence or absence of critical natural or human resources but appropriate deployment of knowledge. Unfortunately, Africa is still relatively low in the production and dissemination of knowledge.

Knowledge is the key that unlocks the doors of opportunity. Through it, people can broaden their horizons and come to a better understanding of the world around them, thus enabling them to make informed decisions. A knowledgeable person is capable of critical thinking and could develop problem-solving skills, including creativity.

Paul Michael Romer, the renowned American economist and policy entrepreneur observed that accumulation of knowledge is the driving force behind economic growth. For countries to promote growth and development, their economic policies should encourage investment in new research and development, and as a corollary to this is the need to promote programmes that develop human capital.

Rapid knowledge creation, including the emergence of new technologies often stimulate policy changes regarding Intellectual Property (IP) and the adoption of new knowledge asset management practices. Intellectual property itself, refers to controls granted for the use and economic exploitation of creations of the mind, such as patents, copyrights (over musical, artistic and literary works), designs, trade secrets and trademarks which are commonly used in manufacturing and commerce.

The emerging importance of Intellectual Property has direct impact and consequences on the new pattern of global trade that evolved in the 1990s, during which some developed countries began to use trade measures to curb piracy of intellectual property abroad, which among other things led to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), one of the World Trade Organisation (WTO) agreements resulting from the multilateral trade negotiations. Thereafter, increasing number of policy-makers in emerging economic powers recognised the important role of the Intellectual Property system in encouraging private investment in research and development, especially in the industrial and scientific fields.

Intellectual Property is a powerful tool for driving economic growth and development but that would only materialise when its economic potentials are unlocked. Fortunately, Nigeria is gradually and steadily, advancing towards formalising IP as proprietary asset in the category of real estate and chattels. For instance, the Nigerian Institution of Estate Surveyors and Valuers (NIESV) has a dedicated faculty of Business Assets and Intellectual Property Valuation. This has provided a vehicle for facilitating expertise in the recognition, identification, description and economic assessment of IP assets of individuals and organisations towards their efficient handling and optimised usage. Thus, IP assets, which though, exist rather subtly and as an under-dog, have proven to be the dominant financial strength of many contemporary businesses.

Studies have revealed that a healthy IP system is a key element in encouraging growth and foreign direct investment (FDI). Take India for example, a steady increase in the level of foreign direct investment in the country has been evident ever since patent and trademark reform was introduced in the early 1990s. It was an even more dramatic development in Brazil, with spectacular growth in foreign direct investment following the introduction of a new industrial property law in 1996. The tendency of firms to patent their inventions has similarly increased worldwide and is particularly noticeable in Asia, Europe and the United States of America.

Efficient and effective management of IP would enhance its commercialisation and generate economic returns and social benefits for the government and the people. For instance, latent economic potentials of a government, organisation and business firms are bound to be unfolded through deliberate commissioning of due diligence, inventorying and valuation of both their tangible and intangible assets.

Government efforts at encouraging skill development, job creation, facilitating the growth of SMEs, enhanced revenue and attraction of foreign trade would easily become realisable through proper policy framework and efficient functioning of the intellectual property system.
Oshiobugie is a Lagos-based Real Estate Consultant.

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