Chapter 7 of the “Evolving IP Market” video series focuses on sovereign wealth funds and the role of Intellectual Property (IP) in protecting domestic industry.
It has been well publicized that globalization leads to “industrial drift” or the migration of manufacturing hubs from one country to the next based on production costs and availability of cheap labor (e.g., the automotive industry’s move from the U.S. to Japan to China). It has been less broadcasted, however, that intellectual property can help mitigate this cycle.
As discussed in this week’s segment, owning U.S. or European patents can give a country a significant competitive advantage in protecting its domestic industry by preventing other nations from acquiring the rights needed to engage in similar production. Governments from around the globe are responding to this knowledge by creating sovereign wealth funds intended to:
While Asian nations have aggressively adopted this strategy, with some of the largest IP focused sovereign wealth funds originating in Taiwan, South Korea, and Japan, the United States, a country with perhaps the most to lose, has been slower to react.
More in-depth information about these topics, including a list of the most prolific sovereign wealth funds, can be found by watching the full video (available below). For additional IP insight and commentary, follow us on Twitter @OTInsights or visit our Ocean Tomo Insights YouTube channel.