Tapping into the economy of ideas: Why progress on sustainable development hinges on IP

Innovation accelerates progress, therefore, it is critical that we harness our IP in ways that ensure innovation is nurtured, protected and rewarded, but within a framework that allows for broader progress 

Typically, a nation’s capacity for physical labour determines the upper limit of the economic value it’s capable of generating. Increasingly however, it is the labour of the mind – the ideas, innovations, and intellectual assets it produces that drive progress. 

While physical work will always be needed to build the infrastructure of our world, and drive every sector of the economy, mental labour, and its tangible expressions will ultimately come to shape our future. It follows that the strength and quality of regulations on Intellectual Property (IP) is indicative of the value that we as a nation assign to this mental labour and the fruits of it. 

Implemented effectively, IP law establishes a quid pro quo arrangement for inventors and creators by affording them a monopoly over their inventions or creations through different types of IP rights. In return, once the period of protection expires, these inventions or creations can be freely used by the public to encourage further improvement and inspire future generations.

The challenge of incentives and accessibility 

Innovation accelerates progress, therefore, it is critical that we harness our IP in ways that ensure innovation is nurtured, protected and rewarded, but within a framework that allows for broader progress.

The balance between protecting these ideas and their capacity to drive innovation and the promotion of widespread access and use is delicate. United Nations Sustainable Development Goal 9 (SDG) refers to Fostering Innovation. Perhaps more than any other, this goal could play a significant role in the success of all 17 SDGs.  For example, an innovative solution developed by an inventor to easily and cost effectively sanitise water, if patented, will then be subject to a monopoly right to a single individual or organisation. It would be sold at an increased price to achieve a return on investment. For patents the period of protection is 20 years from first application. However, by the time the patent term ends, the invention may no longer provide the same benefits to society at large.

This is particularly important in industries such as pharmaceuticals, where the research and development of new drugs require substantial investment. Without the 20 years of patent protection, companies might not invest billions into developing life-saving medications. But if a monopoly over lifesaving medicine is allowed to be unfairly exploited, it can easily hold back progress on all other SDGs. 

To counter this risk, the Intellectual Property system, through the Paris and Berne Conventions, affords the concept of “Compulsory License” for patents and copyright. Yet each member country has the right to legislate independently. For example, in 2012 India granted its first compulsory license to a cancer drug which was patented by a European Pharma company. This may be a method in which SDG 3 – ensuring healthy lives and promoting well-being for all, can be achieved.

While IP rights do afford monopoly rights to its inventors, only 5 to 7% of patented inventions are actually commercialised. In the field of Sustainable Development, it is important to create platforms to connect inventors who have innovations that can drive many different SDGs with the relevant companies, organisations, institutions and even governments that are looking for solutions for their development concerns. 

The benefits of alignment with global best practices

The World Intellectual Property Organization (WIPO) offers a comprehensive solution through the WIPO Green Database, a platform that connects those seeking solutions for environmental or climate change relation problems with a free global innovation catalogue. The system not only provides the details of the patents connected with the solution but in some instances provides even the Technology Readiness Level – the scale used by potential partners to ascertain whether the technology is ready to for commercialised or requires further development. 

There are various types of similar platforms created by organisations, patent offices and international institutions that bridge the gap between inventors and solution seekers. IP also has major implications for the ongoing effort to mitigate the impacts of climate change. 

In the apparel industry, a robust IP framework has spurred significant growth and innovation with potential applications outside across other manufacturing sectors. In India, for instance, the number of environment-related patents filed by apparel companies surged from 26 in 2003 to 206 in 2023. A robust system of IP protection also helps to foster collaboration, particularly on innovations that could potentially have a positive impact on SDGs if applied at scale. 

MAS Holdings has strived to lead by example on this front, focusing on sustainable innovations that foster collaboration. Through our structured sustainability program, the Plan for Change, MAS has committed to inspire sustainable change under the three Pillars of Product, Lives and Planet by driving change not only within the organisation but among its customers and communities. 

On this journey, the approach to Intellectual Property protection has been quite different. The key focus for MAS’s approach to sustainable innovations has not been to seek a monopoly for a particular technology or solution through various IP rights but rather, to collaborate with partners and provide solutions that can be driven by multiple stakeholders. 

Innovative, sustainable solutions such as the Eco Brick and the Ocean Strainer developed within MAS are not subject to any monopoly rights in relation to the technology. That is precisely because we understood that the commercialisation of inventions with the potential to serve a greater public good need to be accessible to be aligned with SDGs. 

By harmonising with international standards on trademarks, we can provide Sri Lankan enterprises and inventors with access to globally enforceable protection on trademarks, as well as geographical indications for protection of region-specific products. This ensures that iconic products are protected from counterfeiting, preventing the dilution of their hard-won brand value. 

By ensuring that the creativity and innovation essential for sustainable development are nurtured, protected and rewarded, we can empower and reward inventors, innovators and creators when they transform their intangible ideas into tangible assets that can compete in the global economy of ideas. 

(The writer is DGM – Intellectual Property at MAS.)