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Wednesday, April 10, 2013

R&D and patents in Indonesia

Indonesia's dependence on natural resources and cheap labour is creating a huge boom. But it faces stagnation one day (the so called 'middle income gap') unless it can create future competitiveness through developing higher value skills. The Foreign Investment Board (BKPM) has called for tax incentives for companies to invest in R&D and training. Its head M Chatib Basri is tipped to become the next Finance Minister, so there is a chance this will happen.
 
Meanwhile a delegation of Indonesian officials led by Law and Human Rights Minister Amir Syamsuddin visited Beijing this week, to talk about IPR protection with Chinese Deputy Law Minister Sujun Zhang, the State Intellectual Property Office (SIPO) and the All China Patent Attorneys Association (ACPAA). IP Komodo hopes they learned about China's National IP Strategy and how China incentivizes its businesses to create IPRs.
 
IP Komodo has long lamented the lack of focus on the knowledge economy, and so it is good to see government figures recognising it. This table of US patent filing data shows how far behind Indonesia is.
 

Thailand and the Philippines are accelerating the number of US patents filed by their residents in the last decade. But Indonesia's rise has been far smaller. In essence a lack of focus on R&D is leaving Indonesia behind, at levels near Vietnam.  

 

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