ABSTRACT
This chapter provides the economic, social, and cultural forces at play. Economics will provide the first set of analytical tools. The chapter discusses recent economic analyses of the impact of intellectual property (IP) protection on bilateral trade flows and foreign direct investment ("FDI"). Appropriate distinctions are made between; inter alia, trade and inward FDI. Wherever possible, lessons about the "right" level of intellectual protection are drawn. The chapter looks at the current quest for a "balanced" approach and suggests ways in which such a balanced intellectual property (IP) regime could be constructed, as part of a broad, knowledge-oriented economic strategy. The IP component of that package, namely the Trade-Related Aspects of Intellectual Property Rights Agreement, adjusted the level of IP protection to what was the highest common denominator among major industrialized countries as of 1991. The chapter examines the number of certain analyses of available empirical evidence about the impact of IP protection.
