Intellectual property rights and SMEs in south-east Asia : innovation policy and innovation practice

The paper is derived from a study carried out among the Association of South-East Asian Nations (ASEAN), comprising of Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Lao PDR , Myanmar and Cambodia [Macdonald, Turpin and Ancog (2006)]. The study focused on the relationship between the region's intellectual property rights (IPR) system and the innovation of its SMEs. IPR administrators and policymakers appear convinced that SMEs need IPR to be competitive. They are confirmed in this opinion by pressure to comply with the Trade Related Aspects of Intellectual Property Rights Agreement (TRIPS). Despite an extensive survey and many interviews in SMEs and relevant agencies in the ASEAN countries, the authors could find little evidence to support this belief. The business strategy of SMEs relies more on copying and deft, niche-focused marketing rather than on the prevailing IPR system.