MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS ENHANCING VIETNAM'S INNOVATIVE CAPACITY THROUGH INTELLECTUAL PROPERTY Specialization: International Trade Law and Policy NGUYEN HAI PHONG Hanoi, 2020 Luan van MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS ENHANCING VIETNAM'S INNOVATIVE CAPACITY THROUGH INTELLECTUAL PROPERTY Major: International Economics Specialization: International Trade Policy and Law Code: 8310106 Full name: Nguyen Hai Phong Supervisor: Assoc. Le Thi Thu Ha Hanoi, 2020 Luan van ii CERTIFICATION I hereby certify that the thesis with the title “Enhancing Vietnam's innovative capacity through Intellectual Property” is my own research and does not reproduce any other materials. The data indicated in the thesis is clear, accurate and collected from the confident sources of information. Author Nguyen Hai Phong Luan van iii ACKNOWLEDGEMENTS Throughout the study course and completing this thesis research, I have received valuable guidance, dedication and enthusiasm of my supervisors, my teachers, my friends, my colleagues and my family.
With all my respect and gratitude, I would like to express my appreciation and sincere thanks to: My special thanks to my supervisor - Assoc. Le Thi Thu Ha, who was dedicated to guide and help me in the process of researching and writing this thesis. Without her instructions and guidance, thesis might not be completed. I would be grateful to teachers in Postgraduate Education and related Faculties of Foreign Trade University for interesting and useful lectures, for enthusiastic transmission of valuable knowledge and for the best conditions offering in the process of the course.
I would like to express sincere thanks to my colleagues in Intellectual Property Office of Vietnam for supporting me with useful and plentiful data and their priceless experiences. This thesis study is a new topic in the world, which requires various knowledge. Thus, the thesis has inevitable shortcomings and limitations. I am looking forward to receiving valuable comments for improvement.
Sincerely, Nguyễn Hải Phong Luan van iv TABLE OF CONTENTS CERTIFICATION. iii Nguyễn Hải Phong. iii TABLE OF CONTENTS. iv LIST OF ABBREVIATIONS.
vi LIST OF TABLES. vii LIST OF FIGURES. ix CHAPTER 1: THEORETICAL BACKGROUND. National innovative capacity.
Definition and related concepts. Measurement of National Innovative Capacity. Global Innovation Index .1 Definition of Global Innovation Index. Dimensions of Global Innovation Index.
Definition of Intellectual Property and related concepts .2 The role of Intellectual Property. Relation between Intellectual Property and Global Innovation Index. Intellectual Property-related Indicators. The meaning and calculation of Intellectual Property-related indicators in Global Innovation Index .26 CHAPTER 2: RECENT CONTRIBUTION OF INTELLECTUAL PROPERTY TO VIETNAM’S INNOVATIVE CAPACITY.
Recent improvement of Vietnam’s Innovative Capacity through Global Innovation Index. General picture of Vietnam in Global Innovation Index. Vietnam in Global Innovation Index as compared to certain countries .1 on the number of patent applications .3 on the number of applications for Utility solutions .1 on the number of groups of goods and services in the Luan van v application for trademark registration .2 on the number of industrial designs in the application 46 2. The need to improve Vietnam’s national capacity through Patents and Utility Models/Solutions.
Patents and Utility Models/Solutions are to be focused. Trend of Vietnam’s Patents and Utility Models/Solutions. Possible additional Trademark - related indicators .56 CHAPTER 3: EFFORTS, PROBLEMS AND POSSIBLE SOLUTIONS TO ENHANCE VIETNAM’S INNOVATIVE CAPACITY THROUGH INTELLECTUAL PROPERTY .1 Vietnam’s efforts to improve Intellectual Property – related indicators. Regulatory framework - Directions of the Government.
National Intellectual Property Strategy. National Program on development of Vietnam Intellectual Property Assets. Technology and Innovation Support Center networking Program and Enabling Intellectual Property Environment Project. Tasks to be done and problems to be solved.
The tasks to achieve the objective of increasing IP-related indicators. The need to improve national tool for measurement of innovation as supplementary indicators to GII. Possible solutions to enhance Vietnam’s innovative capacity through Intellectual Property .1 To improve national tool for measurement of Vietnam’s innovative capacity .2 Improve IP-related GII indicators by increasing quantity and quality of IPR applications and granted protection titles. Promote efficient implementation of the National Intellectual Property strategy, Program and Project .76 Luan van vi LIST OF ABBREVIATIONS ASEAN Association of South East Asian Nations FDI Foreign Direct Investment GCI Global Competitiveness Index GDP Gross Domestic Product GII Global Innovation Index IP Intellectual Property IPR Intellectual Property Right IP Vietnam Intellectual Property Office of Vietnam (previously NOIP) (previously National Office of Intellectual Property) NIC National Innovative Capacity OECD Organization for Economic Cooperation and Development PPP Purchasing Power Parity STI Science, Technology and Innovation WB World Bank WIPO World Intellectual Property Organization Luan van vii LIST OF TABLES Table 2.2: Vietnam’s innovation strengths 2019 .3: Vietnam’s innovation weaknesses 2019 .7: Vietnam ranking in GII among top 6 of ASEAN .8: Ranking of 6 ASEAN countries by GII index 6.9: Rankings of top 6 ASEAN countries on GII index 7.10: Residents’ Patent Applications per million of population - Vietnam in comparison with top 6 ASEAN and North East Asia .11: Residents’ Patent Applications per thousand university graduates – Vietnam in comparison with top ASEAN and North East Asia .12: Total Residents’ Applications for Patent and Utility Model/Solutions per 1000 researchers - Vietnam in comparison with top ASEAN and North East Asia.13: Brand finance Vietnam top 5 (USD million) .2: Growth rate (%) of Total Patents and Utility Models/Solutions applications of Residents - Vietnam in comparison with top ASEAN and North East Asia.82 Luan van viii LIST OF FIGURES Figure 1.1: Dimensions of GII .1: Vietnam’s innovation strengths and weaknesses 2019 .2: Innovation Input/Output performance by income group, 2019 .3: Vietnam Scores in the seven GII pillars .6: Patent applications of Residents - Vietnam in comparison with top 6 ASEAN and North East Asia .7: Rate (%) of Patent applications of Residents - Vietnam in comparison with top ASEAN and North East Asia .8: Utility Models/Solutions Applications of Residents – Vietnam in comparison with top 5 ASEAN and North East Asia .9: Rate (%) of Utility Models/Solutions Applications of Residents - Vietnam in comparison with top 5 ASEAN and China .10: Total Patents and Utility Models/Solutions applications of Residents Vietnam in comparison with top ASEAN and North East Asia .11: Rate (%) of Total Patents and Utility Models/Solutions applications of Residents - Vietnam in comparison with top 5 ASEAN and North East Asia .12: Total Granted Patents and Utility Models/Solutions of Residents - Vietnam in comparison with top ASEAN and North East Asia .13: Ratio of Grants of and Applications for Patent and Utility Models/Solutions Residents (2001 through 2015) - Vietnam in comparison with top ASEAN and North East Asia .14: Residents’ Patent Applications per million of population.15: Applications for Patent+ Utility Models/Solutions of Residents per 1000 Researchers and the equivalent (2002 and 2013) - Vietnam in comparison with top ASEAN and North East Asia .56 Luan van ix ABSTRACT In the era of international integration in economy, innovative capacity is the most important factor that creates the competitiveness of each nation's economy.
Since 2007, innovative capacities of nations have been measured and compared on global scale using the Global Innovation Index (GII). This thesis presents the current status of the Vietnam’s GII and contribution of Intellectual Property (IP) to Vietnam’s GII. Moreover, this thesis explains why despite the government's efforts to improve science and technology policy, the current status of Vietnam's innovation has not been as desired by the society. From these studies, the thesis would like to suggest solutions to increase Vietnam's innovation index, namely certain IP-related indicators of GII, thereby contribute to enhance national capacity.
Luan van 1 INTRODUCTION The significance of the thesis In the era of international integration in economy, the capacity of innovation is the most important factor that creates competitiveness of each nation's economy. National innovative capacities are measured by different tools. Traditionally, national innovation index includes measurements are number of published research articles, international patent applications, expendictures on research and development, etc. Current Competitiveness Index is a tool set for assessment of overall competitiveness.
In recent decates, innovative capacities of nations are measured and compared on global scale through the Global Innovation Index (GII), which was brought into use by the World Intellectual Property Organization (WIPO) in 2007. The GII aims to capture the multi-dimensional facets of innovation and provide the tools that can assist in tailoring policies to promote long-term output growth, improved productivity, and job growth. The GII helps to create an environment in which innovation factors are continually evaluated. It provides a key tool and a rich database of detailed metrics for both micro-economy and macro-economy.
The GII is considered to be better, more diverse and more justifiable compared to traditional measurements. Published annually since 2007, the GII is now a leading benchmarking tool for businesses, policy makers and others seeking insight into the state of innovation around the world. A large number of economies, including Vietnam, having been ranked in GII system, which fluctuates from 107 to 143. Among 141-142 economies in GII, in two years 2014-2015 Vietnam made wonderful jumps to 52nd rank from its lowest GII rank (76th) in period 2012-2013.
In 2016 Vietnam droped down seven degrees from 2015 (from 52th out of 141 economies to 59th out of 128 economies ), much lower than upper ranked countries of ASEAN. In addition, Vietnam's Global Competitiveness ranking 2016 (World Economic Forum) fall fourfold from 2015 (from 56th to 60th), lower than top 6 ASEAN countries. The Vietnam Government acknowledged the changes in GII scores and rankings mean the same changes in National Innovative Capacity (NIC) and national competitiveness. As a result, Resolution 19-2017/NQ-CP on Luan van 2 continuing to implement the major tasks and solutions to improve the business environment, enhance competitiveness in 2017, orienting to 2020 was promulgated on 6 February 2017.
Efforts under this Resolution contribute to make a remarkable progress every year. Vietnam GII jumped up 12, 2 and 3 ranks in 2017, 2018 and 2019 respectively. With these jumps, Vietnam has leapt 17 spots since 2016 and reached place 42nd out of 129 economies in 2019, which is the highest ranking Vietnam has ever achieved. Results of the GII index in 2019 are important evidence for the dire and comprehensive direction of the Government, the Prime Minister and the efforts of the ministries, branches and localities to set up and deploy synchronous and practical solutions to improve the business environment, raise the national capacity for innovation with an aim to raise the national competitiveness.
The issue is how to improve and sustain the stable development of Vietnam's innovation index. The GII 2019 based on 80 indicators, divided into 2 index groups, namely input and output index, that include IP-related indicators. Especially, IPR-related indicators and IP product - related indicators are fundamental components of output index. Therefore, any improvement of IP related indicators will lead to improvement of the input, output and total innovation index, contributing to the increase in the innovative capacity and thus the competitiveness of the economy.
However, the amounts of contribution of IP in Vietnam’s GII growth has not been clarified. This recognition is in line with the Vietnam Government awareness of vital role in development of the economy of science and technology innovations, where IP is back born of technology innovation and a measurement of technology level. Moreover, despite the government's efforts to improve IP policy, the current status of Vietnam's innovation protected by IPR has not been as desired by the society. For the above reasons, the research topic of the thesis was chosen as “Enhancing Vietnam's innovative capacity through Intellectual Property”.
Luan van 3 Literature review Regarding IP and GII, there are two main research streams, namely: GII- specific researches, IP-specific researches. Researches on the IP and GII together should also be the third main stream. a, The GII-specific researches and other researches on instruments of measuring innovative capacity and competitiveness of economies are found among researches on science and technology.