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IPRasaToolforKnowledgeTransferandValueCreationinDominicanRepublic

MACRO-LEVELSTUDY:DominicanRepublic

Act.1.2.

2 IPRasaToolforKnowledgeTransferandValueCreationinDominicanRepublic

IPICA: Empowering knowledge transfer in the Caribbean through effective IPR & KT regimes - MACRO-LEVEL STUDY: IPR AS A TOOL FOR KNOWLEDGE TRANSFER AND VALUE CREATION IN DOMINICAN REPUBLIC

University of Alicante (Spain), FH JOANNEUM (Austria), University of Technology, Jamaica (Jamaica), Ministry of Science, Energy and Technology (Jamaica), Jamaica Intellectual Property Office (Jamaica), Oficina Nacional de la Propiedad Industrial (Dominican Republic), Instituto Tecnológico de Santo Domingo (Dominican Republic), The University of the West Indies (Caribbean), Intellectual Property Office, Ministry of the Attorney General and Legal Affairs (Trinidad and Tobago), Spanish Patent and Trade Mark Office (Spain), World Intellectual Property Organisation (Switzerland), European Union Intellectual Property Office (Spain), Caribbean Community Secretariat (Guyana)

Edited by the University of Alicante, Spain

© Universidad de Alicante 2016. All rights reserved. Reproduction is authorised provided the source is acknowledged.

Please cite this publication as: IPICA project. 2016. IPR as a Tool for Knowledge Transfer and Value Creation in Dominican Republic - MACRO-LEVEL STUDY: Dominican Republic, Alicante. ACP programme.


The IPICA Project is co-financed by ACP-EU Co-operation Programme in Science and Technology(S&T II)withGrantContract identificationNo. FED/2013/330-211. TheACPS&T II Programme isimplementedbytheACPGroupofStates.

This publication has been producedwith the financial assistance of the ACP Secretariat and theEuropeanUnion.ThecontentofthispublicationisthesoleresponsibilityoftheauthorsandcaninnowaybetakentoreflecttheviewsoftheACPSecretariatortheEuropeanUnion.


TableofContentsListofabbreviations...................................................................................................................5

1. Background...........................................................................................................................8

2. Methodology..........................................................................................................................9

3. ResultsinDominicanRepublic....................................................................................103.1InnovationsysteminDominicanRepublic.........................................................................103.2IntegrationofIPRinthenationalinnovationsystem.....................................................143.3Conclusions....................................................................................................................................193.4Recommendations.......................................................................................................................22

4. References..........................................................................................................................24


Listofabbreviations

AADCC AmericanAssociationforDevelopmentandCooperationofCrafts

APEC UniversidadAPEC

CARIFORUM Caribbeanforum

CATI SupportCentreforTechnologyandInnovation

CEI-RD ExportandInvestmentCenteroftheDominicanRepublic

CENDARTE NationalArtisanshipCenter

CERTV StateCorporationRadioandTelevision

CIBIMA CenterforResearchinMarineBiology

CIECA EconomicResearchCenterfortheCaribbean

CNC NationalCompetitivenessCouncil

CODOCAFE DominicanCoffeeCouncil

COPRESIDA PresidentialAIDSCouncil

CR Copyright

DGA GeneralDirectorateofCustoms

DICOEX DirectorateofForeignTrade

DIGECINE GeneralDirectorateofFilm

DIGENOR GeneralDirectorateofStandardsandQualitySystems

DO DesignationofOrigin

DR DominicanRepublic

DR-CAFTA FreeTradeAgreementbetweentheUnitedStates,DominicanRepublicAndCentralAmericanCountries

DVD Digitalvideodisco(orversatile)

ECT TraditionalCulturalExpressions

EPA-UE-CARIFORUM EconomicPartnershipAgreementbetweentheEuropeanUnionandthecountriesofCariforum


EU EuropeanUnion

FONDOCyT NationalfoundofInnovationandscientistandtechnologicdevelopment

GDP Grossdomesticproduct

HIV Humanimmunodeficiencyvirus

IDIAF DominicanInstituteofAgriculturalandForestryResearch

IG Geographicalindication

IIBI InstituteforInnovationinBiotechnologyandIndustry

INDOTEL DominicanInstituteofTelecommunications

INTEC TechnologicalInstituteofSantoDomingo

IP Intellectualproperty

IPR IntellectualPropertyRights

ISA HigherInstituteofAgriculture

ISO StandardoftheInternationalOrganizationforStandardization

ITLA TechnologicalInstituteoftheAmericas

MESCYT NationalCouncilofHigherEducation,ScienceandTechnology

MIA Ministryofagriculture

MIC MinistryofIndustryandTrade

MIE MinistryofEducation

MIMARENA MinistryofEnvironmentandNaturalResources

MINC CultureMinistry

MIREX MinistryofForeignAffairs

NGO Non-governmentalorganization

MP PublicMinistry

NDS NationalDevelopmentStrategy

OCDE OrganizationforEconomicCo-operationandDevelopment

O&M O&MUniversity


ONAP NationalOfficeofIndustrialProperty

ONDA NationalCopyrightOffice

PCT PatentCooperationTreaty

PN NationalPolice

PRO-COMPETENCIA NationalCommissionforProtectionofCompetition

PROMESECAL EssentialDrugsProgram

PUCMM PontificalCatholicUniversity

PYMES Smallandmediumbusinesses

RED-OTRI TechnologyTransferOfficeNetwork

SGACEDOM GeneralSocietyofAuthors,ComposersandPublishersofMusicDominican

SGC CollectiveManagementSociety

SNIDT NationalSystemofInnovationandTechnologicalDevelopment

SOPA StopOnlinePiracyAct

TIC Informationandcommunicationstechnology

TRIPS AgreementonTrade-RelatedAspectsofIntellectualPropertyRightsRelated

UASD AutonomousUniversityofSantoDomingo

UCATECI CatholicTechnologicalUniversityofCibao

UNCTaD UnitedNationsConferenceonTradeandDevelopment

UNESCO UnitedNationsEducational,ScientificandCulturalOrganization

UNIBE IberoamericanUniversity

UPOV ConventionontheProtectionofNewVarietiesofPlant

WTO WorldTradeOrganization

WIPO WorldIntellectualPropertyOrganization

WHO WorldHealthOrganization


1. Background

This study is the final outputof activity 1.2 “Macro-level study: comparative analysis ofpolicy frameworks” of the project “Empowering knowledge transfer in the Caribbeanthrough effective IPR & KT regimes (IPICA)”. The IPICA1 project is co-financed by theEuropean Commission in the framework of the ACP-EU Co-operation Programme inScience and Technology (S&T II) and one of its main goals is generating impact onknowledge and technology transfer policies in three Caribbean countries (DominicanRepublic,Jamaica,andTrinidadandTobago).

There is a need to analyse IPR&KT regimes in theCaribbean countrieswith a view toidentify bottlenecks, loopholes and areas of improvement. In this sense, IPICA hasdevelopeddifferentactivities inthelast3years,partofthemfocusedontheanalysisofthe IP and KT frameworks of the Caribbean region. The IPICA consortium collectedfeedback from a wide range of stakeholders and the current study presents the mainfindings and recommendations that could be considered by the Governments ofDominican Republic, Jamaica and Trinidad and Tobago for integrating IP considerationsintotheinnovationpolicyoftheircountries.

Thisstudyisbasedinthefollowingreport:

National Intellectual Property Strategy of Dominican Republic 20122: the NationalIntellectualPropertyStrategyaimsatintegratingIPintoPublicPoliciesaswellasNationalPlansanddevelopmentstrategies inDominicanRepublic.The initiativehasbeencarriedout with the National Office of Industrial Property (ONAPI) and the National CopyrightOffice (ONDA) and also with the cooperation of the World Intellectual PropertyOrganization(WIPO),throughnationalandinternationalexperts.

1 www.ipica-project.eu 2 ONAPI/WIPO (2012). Estrategia Nacional de Propiedad Intelectual de la República Dominicana 2012. 2 ONAPI/WIPO (2012). Estrategia Nacional de Propiedad Intelectual de la República Dominicana 2012. Santo Domingo, R.D.


2. Methodology

The methodology3 includes a thorough research and IP audit phase and a nationalconsultation process during which stakeholders were invited to review, discuss andconsolidatethedraftIPstrategyframework,withaviewtopresentingthefinalstrategytothegovernmentforadoption.1. The process stated on April 2010 and the first phase consisted on the data

collection usingan integrated tool– theBaselineSurveyQuestionnaire4–whichwas developed by WIPO. The purpose of data collection was to obtain a clearpictureofthecurrentIPsituationinDominicanRepublic(IPaudit),itsweaknesses,strengthsandpotential,and,onthisbasis,torealisticallyassesswhatissuesneedtobeconsideredduringtheformulationofthenationalIPstrategy.

2. Data collection was complemented with desk research carried out to reviewexistingpolicydocuments, inordertocreateacomprehensiveassessmentofthecountry’s national development objectives, strategies and policies, and also inordertoidentifyhowtoalignthenational IPstrategywiththecountry’snationaldevelopmentpriorities.

3. National consultations were carried out to enable stakeholders to activelyparticipate in the validation of the IP audit findings and the formulation of thenationalIPstrategy.Theultimategoalofthisexerciseistoenhanceawiderangeof IP stakeholders’ ownership of the process of developing and eventuallyimplementinganationalIPstrategy.

The outputs of this process was (1) a diagnosis on the IP System (2000-2010), (2) adocument identifying the key productive sectors with potential to increase economic,productiveandcommercialdevelopmentusingandprotectingIPand(3)aproposalwiththe guidelines for drafting a national IP strategy. The final output was the NationalIntellectualPropertyStrategyofDominicanRepublic2012.

3 http://www.wipo.int/ipstrategies/en/methodology/ 4 WIPO. Methodology for the Development of National Intellectual Property Strategies. Tool 2:Baseline Survey Questionnaire. http://www.wipo.int/edocs/pubdocs/en/intproperty/958/wipo_pub_958_2.pdf


3. ResultsinDominicanRepublic5

3.1InnovationsysteminDominicanRepublic

Whatisanationalinnovationsystem?It is the institutional arrangement defined by the set of actors and their interactions,organized around the production, transfer, storage and utilization of knowledge(scientific-technological),forvaluecreationinproducts,goodsandservices.Itincludespublicandprivateorganizationsthatproduceknowledgeofdifferenttypesandhierarchies, institutions (defined as rules of the game), the political and regulatoryframeworkthataffectsvaluecreationactivitiesincludingthefiscalenvironment.Thenotionofnationalinnovationsystemsextendstotheterritorialandsectoralspheres.So you can talk about regional / subnational systems as well as sectoral innovationsystems(i.e.agriculture,health,etc.)MilestonesoftheSTIpolicyintheDominicanRepublicThe21stcenturyscienceand technology in theDominicanRepublicwerebornwith thepromulgationofLaw139-016of2001.This lawstructuredthenationalsystemofHigherEducation,ScienceandTechnology.No market produces enough innovation if it operates spontaneously. Hence theimportancethatliteraturehasgiventotheunderstandingandanalysisofmarketfailuresthat, in any economy, tend to prevent firms from investing in innovation at a sociallydesirablelevel.Thelimitedappropriatenessofknowledge,theintangibilityofresearchanddevelopment(R&D)resultsandcoordinationfailuresthatplagueproductioninnewindustriesmakeitdifficult,amongotherfactors,forinnovationinvestmenttoreachoptimumlevels.Ifanevolutionaryperspectiveisadoptedforamoment,thefirstgenerationofinnovationpolicies in LAC has had to do mainly with the establishment of the institutional andinstrumental foundations.Transitioning fromtraditional scienceandtechnologycouncilsto modern innovation agencies with the capacity to operate basic public policyinstruments,suchasnon-reimbursabletransferstoenterprisestostimulateinvestmentininnovation,hastakenupmuchoftheeffort,anditisstillaworkinprogress.Thesamecanbesaidforthetransitionfromthepromotionofscientificresearchbasedoncuriositytofocusing on support formission-oriented research, that is, a science that has a known

5 The information in this section is based on ONAPI/WIPO (2012). Estrategia Nacional de Propiedad Intelectual de la República Dominicana 2012. Santo Domingo, R.D. 6 Ley 139-01 de Educación Superior, Ciencia y Tecnología. Año 2001


linkage,evenwhenthisisindirect,withthedevelopmentchallengesofthecountries.TheDominicanRepublicdoesnotescapethisLatinAmericanreality.The economy of the Dominican Republic is divided into three major sectors: Services,IndustriesandAgriculture,andinthatsameorderitgeneratejobsinthecountry.Knowingthat, in addition, 82% of the industrial income is manufacturing, which in most casesrepresents nomore than local labor, according to theCEI / RD (2010) the share of theagriculturalsectorinGDPhasbeen8.2%peryearandallrelatedtotraditionalhighcropproductsinconcentrationoflandandlabor.Itisnecessarytodevelopmethodsandproductionthatallowsforalargegrowthofnewproductsorproductswithgreaterproductioncapacityandinlesstime.AccordingtotheWorldInnovationIndex2015(InnovationGlobalIndex), in2014,theDominicanRepublicranked83intermsofinnovation,among143economiesanalyzed,withascoreof32.29outof100.AccordingtotheresultsoftheNationalInnovationSurvey,ENI(2010),morethan68%ofthe (scarce) product innovations in the DR were considered completely new to thecompany, and about 32% declared that they were substantial product improvementsalready existing in the company. "Overall, these findings confirm that most of theDominican innovations had an imitative or adaptive character andwere therefore of alikelyincrementalcharacter"(ENI,2010,pp.)TheDominicanRepublichasmaintaineditsrelativecompetitivenesswithnochangeinitsrankingin2015comparedto2014;TheDoingBusinessevaluationassignsthe84thpositionof 189 countries, referring to issues in which it has worsened such as opening newbusinesses, providing electricity, paying taxes, and obtaining credit. In the GlobalCompetitiveness Index 2014-2015, the Dominican Republic is ranked 101 out of 144countries, ranking seventhamong LatinAmericanandCaribbean countries in apositionlowerthanfiveyearsago,2009-2010,whenitheldthe95thplaceamong133.Accordingtothesamesource,thescorereachedbyDRin itscompetitiveness indicatorsplaces it in a relatively disadvantageous position in relation to other Latin Americancountries such as, for example, Chile (33), Panama (48), Costa Rica ( 51) and Colombia(66),andevenotherCentralAmericancountriessuchasGuatemala(78),ElSalvador(84),Nicaragua(99)andHonduras(100).However, the Dominican Republic has laws, regulations, even opinions within theConstitution(2015)thatrecognizesandestablishesthattheState"willpromoteresearchandtechnologytransfer..."(ConstitutionoftheDominicanRepublic,2015,p.17)andforthatpurpose"TheStateshalldefinepoliciestopromoteandencourageresearch,science,technology and innovation that favor sustainable development, human well-being,competitiveness, institutional strengthening and environmental preservation"(ConstitutionoftheDominicanRepublic,2015,p.22).


NationalLegalFramework

Legislation on Intellectual Property in the Dominican Republic consists of the followinglawsandregulations:

• Law20-00onIndustrialPropertydatedMay8,2000.• Law65-00onCopyrightdated21August2000.• Law424-06onImplementationofDR-CAFTA,dated20November2006,amending

severalarticlesofLaw20-00onIndustrialPropertyandtheLaw65-00Copyright.• Law493-06onImplementationofDR-CAFTA,amendingseveralarticlesofLaw20-

00 on Industrial Property and the Law 65-00 on Copyright, datedDecember 22,2006.

• Law 450-06 on the Protection of Plant Breeders' Rights Plant Variety datedDecember6,2006.

• Decree 599-01 on Implementing Regulations of the Law 20-00 on IndustrialProperty,fromJune1,2001.

• RulesApplicationofLaw65-00ofAugust21,2000.• DrugRegulationNo.246-06,datedDecember22,2006.

InternationalLegalFramework

Dominican Republic is currently signatory of the following International Treaties onIntellectualProperty:

• ParisConventionfortheProtectionofIndustrialProperty,July11,1890• BerneConventionfortheProtectionofLiteraryandArtisticWorks,accessionon24

December1997.• MadridAgreementconcerningtherepressionoffalseormisleadingindicationson

productssources,enteredintoforceApril6,1951.• RomeConventionontheProtectionofartists,performers,phonogramproducers

andbroadcasters,enteredintoforceJanuary27,1987.• WIPOTreatyonCopyright• Law 450-06 on the Protection of Plant Breeders' Rights Plant Variety dated 6

December2006entryintoforce10January2006• Treaty of the WIPO Performances and Phonograms Treaty, which entered into

forceonJanuary10,2006• Budapest Treaty on the International Recognition of the Deposit of

MicroorganismsforthePurposesofPatentProcedure,enteredintoforceon3July2007.

• PatentCooperationTreaty,enteredintoforceMay28,2007• Convention on the Protection of New Varieties of Plants (UPOV), entered into

forceJune16,2007


• TRIPSAgreement(TRIPS),enteredintoforceJanuary1995• ChapterXVoftheFreeTradeAgreementbetweentheDominicanRepublic,United

StatesandCentralAmerica(DR-CAFTA),signedonAugust5,2004andenteredintoforceMarch17,2006

• EconomicPartnershipAgreementbetweentheEuropeanUnionandthecountriesofCARIFORUM,betterknownasEPA-EU-CARIFORUMAgreement.EntryintoforceNovember1,2008.

InstitutionalFramework&SystemUsers

Intellectual Property System in theDominicanRepublic consists of the following agentsandinstitutions:AtthelevelofGovernment:

• The National Office of Industrial Property (ONAPI), attached to the Ministry ofIndustry and Commerce, administers the industrial property system in theDominicanRepublic.

• The National Copyright Office (ONDA), attached to the Ministry of Culture,administersthesystemofcopyrightandrelatedrightsintheDominicanRepublic.

• The Intellectual Property Department of the Directorate General of Customs isresponsible for the implementation of border measures related to violations ofintellectualpropertyrights.

• TheAssistantAttorneyGeneralinchargeofissuesofIntellectualPropertyandthePublic Prosecutor in charge of issues on Intellectual Property to act ex officio incasesofcrimesthatinfringeintellectualpropertyrights.

• TheJudiciary,withordinarycourtstosettledisputesarisingfromcivilandcriminalviolationsofIntellectualPropertyRights

• TheDirectorateGeneralofDrugsandPharmaciesoftheMinistryofPublicHealthandSocialWelfare,responsibleforproceduresandfortheprotectionoftestdataforinnovationsandcreationsofnewpharmaceuticalproducts.

• TheDepartmentof theMinistryofAgriculture, responsible for theprotectionofPlantBreeders'RightsofPlantVarieties.

AtthelevelofUsers:

UsersofIntellectualPropertysystemarethosewhoproducegoodsandservicesthatmaybeprotectedbyIntellectualPropertyRightsorusersoftheserightsthatholdsathird:


• Individuals: inventors, creators, entrepreneurs, students, authors, artists,craftspeople,composers,writers,musicians,artists,performers,producersoffilm,televisionandphonograms,journalists,systemprogrammers,lawyers,architects;

• The companies: national and multinational companies and industries, SMEs,industryassociationsandproducers,cluster,collectivemanagementsocieties,etc.,academic institutions, research centres and public and private development,universities,technologyparks,incubatorsbusinesses,governmentinstitutions,lawfirms,professionalassociations,etc.

Knowledge/researchbaseSincethecreationoftheSecretaryofStateforHigherEducation,ScienceandTechnology,through Law 139-01, the country began to take steps to integrate R&D, science,technologyandinnovationatthenationallevel.Thereare48HigherEducationInstitutionsofwhich32arepublicandprivateuniversitiesaswellasseveralcentresandinstitutesforscientific and technological research that would enable Dominican Republic with thenecessarybasestodevelopthesectorofSTI:

• ScienceandTechnologyCentre(CCT-O&M)• EconomicResearchCentrefortheCaribbean(CIECA)• CentreforResearchinMarineBiology(CIBIMA)• SpecializedCentresoftheAutonomousUniversityofSantoDomingo

(Biotechnology,Energy,Physics,Microbiology,etc.)• InstituteforInnovationinBiotechnologyandIndustry(IIBI)• DominicanInstituteofAgriculturalandForestryResearch(IDIAF)• TechnologicalInstituteoftheAmericas(ITLA)• HigherInstituteofAgriculture(ISA)

3.2IntegrationofIPRinthenationalinnovationsystemByitsnature,intellectualpropertyincludestheprotectionofgoodsandservicesresultingfromthecreationof thehuman intellect, and isgranted throughcopyright, literaryandartisticworksandindustrialproperty includingpatents,trademarksandotherdistinctivesigns. Breeder's Rights, are another form of intellectual property, and protect plantvarieties.The initiative to develop this project to formulate a National Strategy on IntellectualProperty for the Dominican Republic has been carried out with the support andcommitmentof thenational authoritiesof theareaof IntellectualProperty, specifically,the National Office of Industrial Property (ONAPI) and the National Copyright Office(ONDA);andwiththecooperationoftheWorldIntellectualPropertyOrganization(WIPO)throughnationalandinternationalexperts,inordertohelpdevelopingcountriestotakeadvantage of the potential of this instrument to boost their economic and socialdevelopment.


TheNationalIntellectualPropertyStrategyistheresultofextensiveworkcarriedoutwiththe collaboration of the representatives of the country's national intellectual propertyofficesandofthepublicandprivatesectorsassociatedwiththesubject.Itwasattendedbymore than20 institutions grouped in guilds, associationsof productive sectors, craftandprofessionalsectors,managementcompanies,businessincubators,representativesofSME programs, academic institutions, the public ministry, and key ministries, amongothers.The strategy is defined as a tool for political and institutional articulation of theIntellectual Property System which pursues, as a general objective, to encourage andpromote the strategic use of intellectual property in all areas of national productiveactivitiesbyusersandsectorsofinterest,sothatthroughitsuseandprotection,creativityandinnovationarepromotedanditsexploitationcontributestotheeconomic,socialandculturaldevelopmentoftheDominicanRepublic.Theseaxes,whichinturnarelinkedtothekeysectorsofinterestandkeysubjectsofthecountry,atthesametimeidentifythemostrelevantcomponentsofintellectualpropertyatageneral level,definescopeandobjectives,andalsocoverrecommendedactionsfortheachievementofthenationalstrategy.Thesixstrategicaxesidentifiedare:

• Intellectual Creation and Generation. It seeks to encourage innovation andcreativity and significantly increase the production of intangible intellectualproperty assets in companies, centers of scientific and technological research,universities,entrepreneurs,artisticcreatorsandDominicans literary, throughtheincentivetothecreationandintellectualproduction;

• TheProtectionofIntellectualProperty.TohaveareliablelevelofprotectionandsolidityintheadministrationoftheIPsystemforthebenefitofthecreatorsofthistypeofrights,guaranteeingthemaintenanceofobtainedIPRsandaccessibilitytousers;

• The Use, Exploitation and Management of Intellectual Property. It seeks tocommerciallyandeconomicallyexploitintellectualpropertyrights;

• ThePromotionofIntellectualProperty.Itaimstopromotecultureandknowledgegenerationinthefieldofintellectualpropertyinthecountry,andraiseawarenessoftheimportanceofthisinstrument,inordertoincreasetheuseoftheIPsystem;

• Enforcement of Intellectual Property Rights. Build awareness in respect ofIntellectualPropertyRights,topreventinfringementoftheserights;

• Establishment of an interinstitutional body on intellectual property policy. Theneedtocreateacoordinationmechanismatthehighestlevel,whichshoulddefinepublicpoliciesaswellascoordinateallactorsandsuperviseeverythingrelatedtothenationalintellectualpropertysystemintheDominicanRepublic.


Thegeneralandspecificobjectivesof thisstrategyare intendedtobeachievedthroughthe implementation of the proposed recommendations based on the six strategic axesmentioned above,which are aimed at promoting innovation and gradually encouragingthe culture of use, protection and exploitation of intellectual property in all nationalproductivesectors.At thesametime, the instrumentsofpublicandprivate interestaremade available to the public in a structured and coherent way to implement concreteactionsonintellectualproperty.Foralloftheabove,theNationalIntellectualPropertyStrategyisconceivedasatoolthatshould lay the foundations in the short,mediumand long term for thedevelopmentofintellectual propertypolicies, by complyingwith theproposed recommendations,whichseektodefinethem,strengthenthesystem,addressidentifiedweaknessesandthreats,strengthenexistingstrengthsandopportunities,addresschallenges,andcontributetotheadvancementofresearch,science,technologyandinnovation.Finally, the formulation of thisNational Intellectual Property Strategywill contribute tothe integration of Intellectual Property in the context of the public policies of theDominicanGovernment, aswell as putting them at the service of economic, social andcultural development, so that the result will be of benefit to all national productivesectors.TheintegrationofIntellectualPropertyintheInnovationSystemisvisibleinthefollowingtables:1. IntellectualPropertyinKeySectorsoftheDominicanEconomyanditsNeeds.Sector IPElements NecessitiesFarming Varieties of plants, origin

denomination, collectivemarks,certificationmarks.

•TraininginIP•Sustainabilityawarenessprojects•Incentives•Implementationofbreeder'slaw•PromotionoftheuseoftheDistinctiveSignSystem.

HigherEducation Patentsystem,copyright. •TraininginIP•EstablishmentoftheIPAcademy•RegulationsofIPGrantingIPRlicenses,makingcontractsanddividingbenefits.

BiotechnologyIndustry Patentsystemforprotectionandforobtainingtechnologicalinformation

•TraininginIP•Allianceswithotherentities•CreateIPNetworks.•Promotionoftheuseandprotectionofpatents


CulturalIndustry Copyrights,collectivemarks,appellationsoforigin

•TraininginIP•TechnicalassistancetomanageeffectivelytheCollectiveManagementSocieties.•Effectiveenforcement

SoftwareIndustry Copyright,trademarksandpatentsforprocessesthatincludesoftware.

•TraininginIP•Allianceswithotherentities•IntegratedCircuitProtection

Research&Development,ScienceTechnologyandInnovation(R&D&I)

Patents,utilitymodels,industrialdesigns,trademarks,copyrights

•AwarenessandTraining•Incentives•Financing•CreationofIPnetworks•Studiesinassetvaluationandassetmanagement

Health Trademarks,PatentSystemforprotectionandforobtainingtechnologicalinformation,compulsorylicenses.

•TraininginIP•Informationonpatentsandpharmaceuticalsinpublicdomain•Patentmonitoringsystems

InformationandCommunicationTechnologies(ICT)

CopyrightandRelatedRights,trademarks.

•TraininginIP

Tourism Trademarks,collectivemarks,copyright.

•RaisingawarenessinIP•TraininginIP•Promotion

2.StrategicPlanforScience,TechnologyandInnovation2008-2018.CurrentSituation Actions and Elements

associatedtoIPObjectives

Lack of a clear national policyto facilitate collaborationbetween institutions,organizations and enterprisesonIP.

Form a coordinating body onIP, led by a higher authoritythat can adopt policies andguidelines in the area.Promotionof the IPsystemtoobtainmore resources due tothe increase of patentapplications and to allocatethose additional resources toincrease promotion. IncludeONAPI in evaluations ofresearchprojectstobefundedbyFONDOCyT.

Strategic Objective 1:Strengthen the public andfinancial institutionalframework of the nationalscience, technology andinnovation system, supportinginitiatives aimed at itsconsolidation

Shortage of human resources Training of experts in the use Strategic Objective 2: Create


trained in intellectualproperty, science andtechnology.

ofpatentsandtrademarksasasource of technologicalinformation and protectionandinthedraftingofpatents.

human capital in science andtechnology required for thestrengthening of nationalcapacities for knowledgegenerationandinnovation

The information available onIPhasnoaddedvalue.

Make public the patents thatare going public and designinformation system of freeinventions in the DominicanRepublic. Automation ofprocedures and establishmentofIPinformationsystems.

Strategic Objective 3: Tofacilitate the disseminationand social appropriation ofscience, technology andproductiveinnovation

Little use of the IP system topromote technologicaldevelopment and innovationas a factor of enterprisevaluation and economicdevelopment.

Promote the use of licensesandparticipationcontractsforthe economic use of researchresults that are susceptible ofbeing patented in favor ofinventors, researchers andcreators. Improve provisionson licensing procedures andformalities with the aim ofpromoting and monitoring IPactivities.

Strategic Objective 4: Createandfosteramanagementandadministration system forintangible assets resultingfrom research, developmentandinnovationprograms

3.NationalCompetitivenessPlanoftheDominicanRepublic.CurrentSituation Actions and Elements

associatedtoIPObjectives

UnderutilizationofIPasatoolforcompetitiveness

PromotetheuseofIPasatoolof competitiveness; promotethe patent system toencourage innovation;promotetheuseoflicensestosupport technology transferprocesses; develop studies onvaluation andmanagement ofIP assets in industries orcompanies.

To increase the competitivecapacitiesofthecompaniesofthe productive sectorsintegratedinstrategiccluster

No formal system forinnovationanddevelopment.

GreaterparticipationofONAPIin the National System ofInnovation and Development;of Intellectual propertytraining programs in businessincubators and techno park;Establishmentoftechnologicalinformation centers in technoparks.

Strengthening of the NationalSystem of Innovation andTechnological Developmentwith its three pillars: theinstitutes of innovation andtechnological development,theincubatornetworkandthedevelopmentoftechnoparks.


The IP system is notconsidered as a factor thatmayaffectinvestmentlevels.

Strengthening ofAdministrative andEnforcement entities in thearea of IP. Streamline andautomationofprocedures.

Create a favorable businessenvironment for investment,bothdomesticandforeign

Little use of the IP system topromote technologicaldevelopment and innovationas a factor for businessvaluation and economicdevelopment

Encourage innovation andtechnological developmentthroughafriendlyandreliablepatentregime.

That innovation andtechnologicaldevelopmentarethe basis for the DominicanRepublic to move from theindustrial and manufacturingera to the era of knowledgeandmind-bending,developingintellectual capital as a newessential factor for innovationand technologicaldevelopment.

Institutional weaknesses inissues of IP enforcement andadministration, and lack ofregulation of law 488 of 2008on the development andcompetitivenessofSMEs.

Strengthening ofAdministrative andEnforcement entities in thearea of IP. Regulation of Law488 of 2008 on thedevelopment andcompetitivenessofSMEs.

The modernization ofinstitutions and the legalframework in terms ofcompetitiveness.

3.3ConclusionsIt is well known that patenting in Latin American and Caribbean economies hastraditionally been very weak. This data is usually presented as part of the standarddiagnosisofthetechnologicalbackwardnessoftheregion:fewpatentsseemtoindicateclearlythatthescientistsandcompaniesoftheregiondonotproducesufficientnewideascapableofgeneratingnewtechnologicaldevelopments,or-asaminimum-thatinventorslacktheproperknowhowtomarkettheirideas.Inthiscontext,patentsaretheresultofa(moreorlesslinearprocess)ofR&Dinvestment.TheapproachofDeLeónandFernándezisdifferent:thelowlevelofpatentingisworryingbecause it deprives companies of a primary source to finance their activities andinvestments. The lack of intellectual property valuation in practice represents aformidableobstacletothedevelopmentoftheventurecapitalmarketandisthereforeakeypartof thesevereconstraints facedbyaneworwell-established innovative firmto


obtain financing for innovative initiatives, by definition of high risk and consequentlybeyondthereachofconventionalcommercialbanking.Thisperspectiveisnotthattherearenopatentsbecausetherearenoideasbuttherearenosuccessfulattemptstomarketideas because intellectual property cannot be used as a lever to obtain financing forprojectsthatincorporatenewideas.ThefundamentalshortfallofLACinnovationsystemsinthefieldoftechnologyvaluationrepresents, inpractice,amajorcontribution to thedifficultiesofobtaining financing forinnovationactivities,aconstantcomplaintofcompaniesthroughoutthecountry.Fromthisperspective,thenextnaturalstepistofullyunderstandtherootofweaknessintechnologymarketing.Aconventionalviewwouldsuggestthat,giventhemarketfailuresimplicit in the production of ideas, and especially the lack of rivalry in their use,whichdiscouragesitsproduction,theinstitutionalizationofstrongintellectualpropertyregimesthatcreateprocesses,guaranteesandpublicagenciesresponsibleforthemanagementofintellectualproperty, inaccordancewithgoodinternationalpractices inthefield,shouldhavehadavisibleinfluenceonanumberofadvancesinthenumberandqualityofpatentsoriginatinginLatinAmericancountries.However,althoughtheinstitutionaldevelopmentmentioned in fact took place, the desired result did not occur and the indicators ofpatenting remained, for all practical purposes, unaltered. Clearly, institutional reformssuchasthecreationofanationalpatentofficeoritsmodernization,ortheintroductionofmodernintellectualproperty legislation,constitute importantandnecessarychange,buttheyhavenotbeenenough.In the case of Latin America, the relative low R&D investment may be an interestingindicatorofseveralaspectsofthegeneraldevelopmentgapintheregion:therelativelowcompetitiveness of the region compared to other emerging regions; levels of economicgrowthvolatilityandlimitedprogressinthefightagainstpovertyandsocialexclusion.ThisimpliesthattheinnovativepotentialofR&Dinvestmentaswellasitseconomicandsocial impact isseriously limitedbyapublicover-allotmentthatmaybedesirable intheshortterm,butrequiresagradualandsystematicreorientationtowardsincreasingprivateparticipation,thuspromotingmoreconfidenceamongeconomicagents,acultureofriskinvestment, more innovations in strategic economic sectors and a better overallpositioningofregionaleconomies.ThisshowsmarketfailuresinLatinAmericaneconomiesthatlimitbothparticipationandimpactofR&Dactivities inthesocialandeconomicstructureoftheregion,suchas:(i)the lowconditionsofappropriationanddiffusionof theknowledgeand(ii) the levelsofriskassociatedwithR&Dinvestment.Thatis,duetothelowconditionsofappropriationofthespecializedknowledgerequiredforR&Dactivities,thereturnofprivateinvestmentinR&Dactivitiesislowerthantheirsocialreturn,sothefirms'investmentwilltendtobeless than the optimal social level that is required.InthecaseoftheDominicanRepublic,therearenoappropriatemeasurestoestimatethedegreeofinvestmentinR&DaspartoftheEIP.Accordingtoestimatesmadebytheteam


of the University of La Coruña, in the framework of the Technological Policy Project(INPOLTEC 11), in the case of Dominican Republic it was concluded that investment inR&Dfor2003was lowerthan0.06ofthePIE,anappreciationthathastobetakenwithreservations because of the limited methodological coverage of the study. However,taking intoaccountthepublic investmentmade inrecentyears in initiativessuchastheCommunityTechnologyCenters conductedby INDOTEL, theOfficeof theFirst LadyandinvestmentssuchastheSantoDomingoCyberneticPark,theestimatemayyieldmodestresultswithrespecttotheEIP.SystematicinvestmentinspecificareasofR&Dhastakenasignificantstepwiththeannualcalls for projects carried out by the National Fund for Innovation and TechnologicalDevelopment(FONDOCYT),whichwasput intoeffectforthefirsttimein2009,withtheapprovalofthirty-four(34)projectswithaninvestmentof213millionpesosintheareasof Biotechnology, Basic Sciences, Energy, Environment andNatural Resources (MESCYT,2009).Despite these limited efforts, there is a serious disarticulation between research anddevelopmentpolicyandeconomicpolicyaimedatahigherlevelofeconomicgrowthandcompetitiveness, as well as social policies aimed at promoting human well-being anddevelopmentthesizeofthegapinscienceandtechnologyintheDominicanRepublic,andthemagnitudeofthechallengeposedbytheimplementationofthistypeofpolicy.Institutional weakness of the national science, technology and innovation system; as aconsequenceofthissituation,it isdifficulttocoordinaterelationsbetweentheactorsofthesystemandthepublicentity,andinadditiontheproductivesectors,especiallySMEs,are left out of the perspective of policies and development opportunities in terms ofinnovationandtransferoftechnology.Limited mechanisms for linkage, coordination, collaboration and inter-institutional andsectoralparticipation; as a consequenceof this situation,different initiativeshavebeendeveloped and the Council of Innovation and Technological Development has beencreated to promote among other things, inter-institutional coordination linking thescienceandtechnologysystemwiththeproductivesectors,withoutachievingthedesiredarticulationfromaconcertedstrategybetweenthedifferentactorsandsectorsthathastodowiththeproduction,managementandtransferofknowledge.Weakness of the Systemof Innovation and Technological Development: The process oftechnological transfer is consubstantial to productive innovation and competitiveness.This isacomplexprocessthattakesplace infourbasicenvironments(scientific,market,legal and financial), involves several actors and depends on a number of elements orcritical factors. Innovation and technology transfer policies should aim to promote theformationofinnovativeagentsandhumanresourcesgroupsandtoimprovespecializationinproductivecooperationcontexts,favoringthedevelopmentofacommonlanguageandtechniques that encourage division of labor, specialization and the complementarity of


agents and institutions and consequently create key externalities for increasingcompetitivenessandforsustainingaprocessofsustainablegrowthoftheeconomy.Withinthemarketfailuresapproachwehave:

• Knowledgeasapublicorquasi-publicgood• The notion of externality: the creator of knowledge cannot appreciate all its

benefitsandoftenasubstantialpartofit• Lowinvestmentinknowledgeproduction• Lowerprivatereturnsthanpublicreturns

Thescaleoftheexternalitydependsonfactorssuchas:

• Howbasicordirectedistheproductionofknowledgeand• Howprotectedistheknowledgeproduced.

Asacountryandwithinthiscontextwemusthighlightflawsinthesedirections:

• Infrastructurefailure(ICT,telecommunications,analyticalservices).• Pathdependency:thesystemcannotcomeoutofitstechnologicaldependenceby

itself.• "Hard"institutionalfailures(informalinstitutions,regulation,etc.)• "Soft"institutionalfailures(politics,culture,norms,values,etc.)• Connectionandnetworksfailures(watertightlogic,lackoflinks,capacityfailures)• FailuresinSINgovernance

3.4RecommendationsThemainopportunitiesofthesystemare:

• Improvingcoordinationandpublic-publicdialogue.• Promotesocialnetworkingaroundinnovationissues:bottom-up.• Buildingstrongconsensusthroughpublic-privatedialogueonthespecifictopicof

ITCFromthepointofviewofSTIpolicies.Acentralquestionistounderstandtheinteractions of both policies and their instruments, that is, a perspective thatincorporatesthecombinationof instruments(policy-mix) isrequired.This impliesthinking at least from two perspectives: from a narrow perspective and from abroadperspective.

o The narrow perspective implies thinking of a combination of innovationpoliciesandinstruments,thatisdelimitingthescopeoftheinstrumentsinthefieldofinnovation.

o The broad perspective implies thinking of a combination of policies andinstrumentsforinnovation,i.e.thecombinationofpolicyinstrumentsthatinteract to influence the extent towhich innovation policy objectives areachieved(innovationoutcomes).

• Publicpolicyneeds:toprovidegeneralfundingforscience,fundamentalresearch,andsupportR&D.


Theapproachofsystemicfailures:Knowledgeproductionandexploitationneeds:

• Developmentofgenerationandabsorptioncapacities• Exchanges,cooperation,interaction(complementaritiesandspecialization)


4. ReferencesONAPI/OMPI. (2012). Estrategia Nacional de Propiedad Intelectual de la RepúblicaDominicana2012.SantoDomingo,R.D.

WIPO.MethodologyfortheDevelopmentofNationalIntellectualPropertyStrategies.Tool2:BaselineSurveyQuestionnaire.http://www.wipo.int/edocs/pubdocs/en/intproperty/958/wipo_pub_958_2.pdf

IPICAproject(2016).EmpoweringknowledgetransferintheCaribbeanthrougheffectiveIPR & KT regimes - MICRO-LEVEL STUDY: BENCHMARKING REPORT. Universidad deAlicante.

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