Empirical studies prove --- second-tier property rights with limited protections spur innovation, R&D and growth

(Dr. Uma Suthersanen, Chair in International Intellectual Property Law, Centre for Commercial Law Studies, Queen Mary, University of London, United Kingdom“Utility models: Do they really serve national innovation strategies?,” pg online @ https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3139963 //pa-ef)

A well-cited study by Kumar found that in East Asian countries (namely, Japan, South Korea and Taiwan), a combination of relatively weak IPR protection and the availability of second-tier patents like utility models and design patents encouraged technological learning in their developmental years.35 The weak IPRs helped by allowing for local absorption of foreign innovations and R&D spillovers. Second-tier systems encouraged minor adaptations and inventions by local firms. Consequently, such economies became stronger, partly because local technological capacity was sufficiently advanced to generate a significant amount of innovation, and also as a result of international pressure. The report situates India’s experience as being somewhat similar, except that in her case, no second-tier protection was provided. Whilst this apparently did not hurt the growth of Indian chemical or pharmaceutical industries, it may have hindered the development of innovative engineering industries.36