How India can attract more foreign direct investment, create jobs, and increase GDP: The benefits of respecting the intellectual property rights of foreign pharmaceutical producers

As the effective application of new technologies has become increasingly important to most nations’ economic growth and development, the significance of intellectual property (IP) rights has also increased. Most technological innovations come from the world’s most advanced countries; and the transfers of those technologies to developing nations, mostly through the foreign direct investments (FDI) of multinational companies, are critical to efforts to modernize their economies. The economic returns on these transfers depend on the foreign investor’s ability to claim the profits from its innovations. As a result, a willingness to respect and enforce the IP rights of those foreign direct investors has become a prerequisite for modernization in most developing countries.