Let’s think long term

On October 30, the Property Rights Alliance presented the results of the International Property Rights Index 2024. This index is a tool that measures and compares the status and protection of property rights in 125 countries, which together represent 97.5% of the world’s GDP.

This analysis is crucial, since property rights are fundamental to attract investment, promote innovation, and therefore drive economic growth.

The results for Colombia show a significant decline: the country fell six positions compared to 2022, placing it in position 80 in 2023. Especially worrying is the deterioration in the dimension of Intellectual Property Rights, where Colombia went from 60th place in 2022 to 80th in 2023.

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This poor performance adds to the general decline of other indicators used to measure the country’s competitiveness. The OECD, in its economic assessment report on Colombia presented in September 2024, He emphasized the evident need for the country to address the persistent low aggregate productivity, taking into account that this is approximately half of the average rate of OECD countries and their Latin American peers. Furthermore, Colombia continues to be the OECD country with the lowest GDP per hour worked.

As derived from the OECD report, low productivity in Colombia, both at the national and regional level, is the result of gaps in various factors such as the business environment, infrastructure, skills and institutions.

This is reflected in the country’s poor performance compared to other OECD countries and in the disparities between regions, according to the Departmental Competitiveness Index. In its recommendations, the OECD emphasizes the importance of promoting innovation as a key tool to increase productivity and improve competitiveness.

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This would allow Colombia to better position itself in globalized markets, with the consequent positive effect on the well-being of the population. However, in 2020, Colombia allocated only 0.3% of its GDP to research and development (R&D), A figure much lower than the OECD average and lower than that of most countries in the region. And, in the 2023 Global Innovation Index, Colombia was ranked 66th among 132 countries, dropping three positions compared to 2022 and ranking behind Uruguay (63), Mexico (58), Chile (52) and Brazil (49). , while Switzerland and the United States lead the global ranking.

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The OECD recommendations are aligned with the theories of Nobel Prize winners Daron Acemoglu and James Robinson, who maintain that nations that foster innovation, invest in R&D, improve education and strategically use intellectual property They can escape the traps of underdevelopment, increasing productivity and reducing social and regional gaps.

In the same sense, a recent study by Eduardo Lora and other experts also supports this vision, pointing out that innovation and competitiveness can mitigate inequality in Colombia through their positive impact on productivity. Without a doubt, it is urgent for Colombia to promote improvements in productivity, which will allow it to achieve higher rates of structural growth, with the generation of employment with greater added value. But for all this to take place, it is crucial to have business development and innovation policies based on solid institutions, where the Government works jointly with companies, academia and research centers, with a long-term purpose.

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This implies effective coordination between entities, a clear delimitation of functions, the prioritization of strategic objectives, trained public officials, guarantees of legal stability and respect for intellectual property rights. In summary, a comprehensive approach is essential with the promotion of scientific research, with incentives to attract investment and technology transfer, and that combines solid competition policies.

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It is important that civil society understands that the advances we achieve in innovation, thanks to Research and Development and the application of knowledge in production processes, not only protect fundamental rights such as life and food security, but also result in multiple benefits which are transversal to all the economic activities of a society, allowing access to higher quality goods and services. And along these lines, intellectual property, especially patents, play a fundamental role.

It is the instrument that motivates companies and individuals to develop solutions to complex problems and seek efficiencies in various activities. Without patent protection, companies would not be sure of recovering their investments, which could drastically reduce innovation in areas as relevant as the development of new medicines that can treat complex and rare diseases, or technological developments that allow greater efficiencies to be achieved. in the agricultural sector, promoting efficient food production.

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It is therefore important to promote the knowledge of citizens, businessmen, innovators, and researchers about the relevance of protecting intellectual property rights and its positive impact on the economic and social development of the country. For example, Patient associations could highlight and recognize the vital role of pharmaceutical companies in researching life-saving medicines.

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In short, Colombia must face the debates that are really important and hopefully concentrate on defining the long-term development path that will allow it to close the gaps in social inclusion and reduce poverty, taking advantage of its potential and comparative advantages. . We should not lose sight of the fact that the world is changing rapidly, and the challenges such as the energy transition, digital transformation, as well as accelerated advances in Artificial Intelligence, which could be focused, for example, on mitigating the effects of climate change. All represent opportunities for a significant social and regional transformation of the country, based on productivity gains in a knowledge economy.

To achieve this, it is essential that innovation and competition policies are supported by a transparent State that works to consolidate an intellectual property system aligned with international standards. With legal stability and respect for intellectual property rights, Colombia can become an attractive destination for national and foreign investment with the consequent benefit for the well-being of all.