Foster, C. G. & Alexander, R. 2024. Digital innovation and the manifestations of intellectual property in Asia and Africa: A multiple-case analysis, Paper presented at SASE 2024, Limerick, Dublin, July
[Paper in progress]
Abstract
Intellectual property (IP) has been theorized to be core to business models in the digital economy. This is because competitive advantage is increasingly created through digital innovation and seen as an intangible capital (Haskel & Westlake 2017). Firms have sought to protect these investments in intangible capital in multiple ways: Firstly, through technical systems, data ownership, and algorithms that “black-box” or tightly control intangible capital from external actors. Secondly, the increasing use of intellectual property rights (IPR) provides a foundation to protect digital innovations, with WIPO data showing sharp increases in filings in recent decades (WIPO 2020).
It is this latter notion of IPR that this study seeks to explore in the context of development. As countries outside the leading economies become involved in digital economies: as innovators, as adapters, as users, and as consumers, it is important to analyse the dynamics of IPR. There were active debates in the early 2000s, on how IPR has structured global core-periphery relationships in development (e.g. Chang 2001). With the emergence of multinationals and strong global intellectual property regimes, it was often argued that expansions of IPR further cement structural inequality. However, with the changing dynamics in the digital economy (and associated IPR use), these discussions need to be revisited to consider activities and globalizing relations (e.g.. Foster 2023).
This study will outline preliminary results from a multiple case study analysis covering 10 firms that have been involved in digital innovation and IPR. Given the lack of knowledge around IPR in global economic development processes, this study returns to first principles and seeks to answer fundamental questions about IP and IPR in each case study: What innovations are occurring and how are these embedded within IPR? How is the IPR used within firms? How does IPR orientate relations between different actors within an innovation network? The analysis pays particular attention to how social and development-orientated innovations are being linked to IPR, as related to these questions.
The cases considered include five companies from Asia and five from Africa that have all been active in their use of IPR. These cases represent a disparate set of new (founded between 2010 and 2020) firms in the digital economy that have demonstrated success and/or growth as demonstrated through measurable indicators, such as revenue and investments received. Data collection involved reviewing material published in news media and databases and conducting key stakeholder interviews.
By examining cross-cutting findings across these case studies, the study seeks to build a more generalised conceptual framework around the dynamics of innovation and IPR. We explore the uneven nature global IPR regimes. Drawing from the inclusive innovation literature, we consider the roles that are played by different global and local actors in supporting innovation. We map sources of support and inputs across the cases to determine common patterns and key elements of divergence.
In line, with the conference special session. We also reflect more broadly on the implications of our findings in terms of ideas of inclusive innovation. In this context, little has been said about the role of IPR in shaping the inclusivity of innovations and innovation systems. This work then points to future directions for research that can seek to reduce the structural challenges associated with IPR, including specific policies and actions that support more equitable innovation systems.