Turning Ideas into Growth: Why National IP Strategies Matter for Emerging Innovation Economies

Why It Matters

Intellectual property (IP) is now a core driver of competitiveness, innovation, and economic growth. Without a strong national IP strategy, businesses struggle to protect their ideas, attract investment, and expand globally. In South Asia, Sri Lanka illustrates this challenge: the absence of a forward-looking IP framework hampers entrepreneurial and economic potential, especially as neighbouring countries adopt more strategic IP policies.

Key Takeaways

• A national IP strategy structures how countries protect, manage, and monetise ideas, building confidence for innovators and investors.
• Sri Lanka’s absence of such a strategy results in weak protection, limited value creation, and fragmented innovation efforts.
• India, Bangladesh, and Nepal show how deliberate IP policies can strengthen entrepreneurship, commercialisation, and sector growth.

Why National IP Strategies Matter: A Regional Benchmark

A national IP strategy is more than a legal document; it is an economic roadmap that helps convert ideas into value. Countries with clear IP policies provide certainty for businesses, attract investment, and support technology transfer and start-up growth.

Singapore is a standout example. Through successive national IP masterplans, it has aligned IP with industrial, educational, and trade goals, contributing to its rise to 4th globally and 1st in Asia in the 2024 Global Innovation Index. Its experience shows how intentional, well-resourced IP planning boosts competitiveness and economic resilience.

Sri Lanka: Innovation Rich, Policy Poor

Sri Lanka has a long tradition of ingenuity, from ancient irrigation systems to enduring architectural and medical innovations. Yet this creative legacy has not translated into modern, innovation-driven growth. Much of the country’s IP framework is inherited or treaty-driven rather than designed for local needs, resulting in a fragmented system and a low ranking of 89th in the 2024 Global Innovation Index.

Key challenges include:

• Commercialisation bottlenecks: Weak pathways for turning research and inventions into marketable products.
• Underprotected signature products: Despite strong global brands like Ceylon Tea and Ceylon Cinnamon, no geographical indications have been registered since the system was introduced in 2022.
• Fragmented institutions: Agencies operate in silos, causing duplication and inconsistent support.
• Missed treaty flexibilities: Opportunities under agreements like TRIPS remain underused.
• Outdated rules for emerging sectors: Software, AI, and digital industries lack modern legal clarity.

Sri Lanka’s experience underscores a simple truth: innovation needs direction and a supportive policy environment to deliver economic value.

Lessons from Regional Neighbours

India’s 2016 National IPR Policy strengthened enforcement and commercialisation, contributing to its rise to 39th in the 2024 Global Innovation Index. Bangladesh’s 2018 Innovation and IP Policy boosted SME competitiveness and protected traditional knowledge, helping it climb from 116th to 106th. Nepal has moved to secure geographical indications and safeguard cultural heritage.

The regional trend is clear: countries that invest in strong IP strategies create better conditions for entrepreneurship, technology adoption, and sustainable economic growth. Sri Lanka’s current gap represents both a risk and a major opportunity.

Business Implications

For businesses, a national IP policy provides clarity and confidence. It aligns IP laws with development goals, strengthens investment incentives, and helps protect local products and technologies at home and abroad. The result: fewer legal uncertainties, stronger innovation pipelines, and improved access to high-value markets.

 

Authors & Sources

Author: Althaf Marsoof (Nanyang Technological University)
Original Book Chapter: Intellectual Property Debates in South Asia: Law, Development, and Practice

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