IP: A Development Ticket to WealthBy Cinthya Alaniz Salazar | Thu, 07/15/2021 - 11:27
Mexican companies that protected their brands and patents contributed to almost half of the country’s GDP (PIB) between 2010 and 2019, equivalent to MX$11.5 trillion (US$576.6 billion), according to a study by IP Key Latin America (IPKEY) in conjunction with Mexican Institute of Industrial Property (IMPI). Furthermore, these companies generated a third of all jobs in the country and represent more than 70 percent of total merchandise exports and imports. The latter is largely a combination of intellectual property (IP) and free trade practices under the USMCA.
Innovation goes beyond improving a mere product or service, it is a driving force that leads to the creation of new technology, commercial optimization, competitiveness, economic growth and expansion of countries’ social influence. With this in mind, in order to continue fostering innovation, IP should be a fundamental component to a country’s long-term economic development strategy.
The protection of intellectual property has always played a central role in a company’s ability to accumulate wealth and the economic development of the country itself. Its through the protection of IP that innovation becomes embedded in the economic engine of a country.
As the world makes a complete and inevitable transition into Industry 4.0, as mentioned previously by MBN, Mexico needs to keep pace with it’s growing technologies sector if it wishes to remain a regional leader in automation in Latin America. In 2019, the sector was valued at US$1.399 billion with a forecasted growth of 8 percent over the next five years.
In recognition of the salient importance of IP to a country’s multilateral growth, it is in the best interest of the federal government and its citizens to expand and continue developing regulations and policies that protect IP, and thus innovation. Going forward into an increasingly globalized world, Mexico needs to keep pace with IP protection specifically in its automation sector where the country currently leads regionally. Failure to get ahead of the curb will not only wipe out the advances made in the automation sector, it will also set the country back as the world moves away from a resource-based economy.