Economists and statisticians use many factors to judge if a country is growing. The most prominent one is the country's Gross Domestic Product (GDP). However, many of them often fail to talk about what is required for the GDP to continue to grow.
The data provided by WIPO demonstrates how India's GDP has been directly affected by the patent filings (or innovations) in the country for the last 10 years.
In 2011, the patent count was 15,914, and the GDP (in US $) stood at $5,501.13. In 2012, when the patent count increased to 18,250, the GDP increased to $5,801. By 2020, the patent count increased to 37,880. Simultaneously, the GDP increased to $8,443.36.
This means if a country continuously wants to grow over a long period, economic well-being can only come from innovation. Especially in this tech era, innovations define the framework of the nation's economy. And the increase in new ideas bears the need to protect them, making Intellectual Property Rights (IPR) important.
Patents are one of the most effective forms of IP for accomplishing economic development. And from the data provided, it can be said that India has realized the importance of protection and successful implementation of intellectual property.
Society can only be taken to the next level if the focus is given to Innovation, Investment, and Institutions.
Today, every business in the world is the product of innovation. In an innovative world, evolving in every sector, protecting the rights of people is important.
IPR grants preferential rights to the owner or creator of the property. So, they can decide the fair value and sell it to anyone. Good returns to developers encourage them and others to develop new ideas. Thus, promoting innovation which directly results in economic development.
Many multinational firms have started their research and development process in India. This has indirectly boosted the nation's economic growth with the rise in payment of taxes and employment to the people of India.
Looking at the top Indian PCT applicants from WIPO's stats, we can see corporations like TVS Motor Company Ltd, Tata Consultancy Services, UPL Ltd, Hero Motocorp Ltd, Dr. Reddy's Laboratories Ltd, etc. are increasingly innovating.
Additionally, innovation in institutions such as the Indian Institute of Technology and the Indian Institute of Science consistently increases over time. From 48 patents in 2018 to 78 in 2020, IIT stands at the top of the list.
Patents are crucial in defining the success of a country in the global marketplace. The patent regime of a country is therefore vital in advancing innovation.
"We are in an era where India is producing companies that are competing globally with companies around the world. If we do not innovate, someone else will. Therefore, to grow, it is important for us and India as a country to innovate.", says Deepak Syal from GreyB, a patent analytics firm.
Deepak Syal further adds, "Patents are a metric to measure technological innovation and thus form the backbone of the nation's economy. Therefore, the terms economic growth and technological innovation go together when it comes to a nation's development.".