Indonesia Climbs 7 Spots in Global Innovation Index 2024: What's Fueling the Rise? - AFFA IPR

Indonesia Climbs 7 Spots in Global Innovation Index 2024: What’s Fueling the Rise?

Industrial Design

The Global Innovation Index (GII) is an annual report published by the World Intellectual Property Organization (WIPO), in collaboration with Cornell University, USA, and the Institut Européen d’Administration des Affaires (INSEAD), France. This index ranks countries based on innovation capacity and performance, using more than 80 indicators covering innovation inputs (such as institutions, human resources, and infrastructure) and outputs (such as research outcomes, technology, and creative products). This index is a crucial benchmark, as innovation is a primary driver of economic development, especially in knowledge-based economies. Intellectual Property (IP) is a critical component of this innovation ecosystem.   With effective IP protection and management, countries can create new technologies, enhance competitiveness in global markets, and provide incentives for inventors and creators to continue innovating. IP ensures that innovation results are protected from easy duplication or misuse while offering economic benefits to innovators through Copyright, Patents, Trademarks, and Industrial Designs.   Rising from Rank 61 to 54  This year (2024), Indonesia has experienced a significant improvement, climbing from rank 61 in 2023 to rank 54, closely trailing the Philippines at 53. Several key factors drove this rise:   Policy Stability for Doing Business Measures how the government ensures a stable policy environment for business activities. This indicator is based on perceptions of policy stability measured through surveys. Entrepreneurship Policies and Culture Assesses policies that support entrepreneurship and a culture that encourages domestic entrepreneurial activity. This indicator reflects support for the establishment and growth of new ventures. Finance for Startups and Scaleups Measures the availability of financial capital for startups and business development, including access to venture capital and other financial instruments that support startup growth and business expansion. Domestic Market Scale Measures the domestic market size based on Gross Domestic Product (GDP) and National Income. This indicator highlights the domestic market’s potential for innovative products and services. University-Industry R&D Collaboration Assesses the level of research and development collaboration between universities and industries, reflecting the integration of academic and industrial sectors in generating innovation. State of Cluster Development Measures the level of development of industrial and technology clusters, including coordination between companies and institutions within clusters to enhance innovation and growth. Software Spending Measures total corporate spending on software, indicating investments in IT solutions that support operations and innovation.   However, Indonesia still lags in several indicators, including: Expenditure on Education Reflects government spending on education per student, indicating the priority of education in the national budget allocation. Government Funding per Pupil Measures government funds allocated per student, reflecting the nation’s investment in human capital development through education. Tertiary Inbound Mobility Measures the number of international students enrolled in domestic higher education institutions, indicating the global attractiveness of the nation’s universities. Firms Offering Formal Training Reflects the percentage of companies providing formal employee training, indicating corporate investment in employee skill development. Scientific and Technical Articles Measures the number of scientific and technical publications, reflecting a country’s research output and innovation capacity.   These factors still place Indonesia behind other ASEAN countries like Singapore (rank 4), Malaysia (33), Thailand (41), Vietnam (44), and the Philippines (53).   A significant difference between Indonesia and the Philippines lies in the strength of innovation output. The Philippines excels in High-Tech Manufacturing, Production and Export Complexity, High-Tech Exports, ICT Services Exports, and Creative Goods Exports. Compared to Malaysia, they outperform Indonesia in the number of Graduates in Science and Engineering, University Rankings, and Domestic Credit to the Private Sector.   Indonesia still needs to work on competing with these nations, mainly when its weaknesses lie in fundamental categories such as government spending and educational budgets, particularly at the primary level. However, Indonesia’s improved investment climate, marked by the growth of startups and solid indicators for stable government policies, reflects its commitment to creating a better business environment. Should you need further information related to innovation, Patents, or other Intellectual Property protection in Indonesia, feel free to contact us via email: [email protected].

ASEAN IP 2024: Addressing Intellectual Property Issues by AI by Maximizing the Use of AI - AFFA IPR

ASEAN IPA 2024: Addressing Intellectual Property Issues by AI by Maximizing the Use of AI

Event, Intellectual Property

This article is a continuation of the previous article, which discussed the Challenges of Intellectual Property Protection in the Digital Era for countries in Southeast Asia, as presented at the 2024 ASEAN Intellectual Property Association (IPA) Annual General Meeting & Conference, which took place on March 1-2 ago in Jakarta, Indonesia. As previously explained, the Digital Economy presents challenges in protecting Intellectual Property (IP) in the ASEAN region. However, what has not been revealed in the article is the contribution of Artificial Intelligence (AI) to the growth of the digital economy and its impact on IP law enforcement, even though AI’s contribution to regional GDP in 2030 will reach USD 1 trillion.   The growth of the Digital Economy in the ASEAN region cannot be denied, generated by many start-up companies in various fields, such as Techinasia in the media sector, Grab in the transportation sector, and Traveloka in the tourism sector. Of the USD 100 billion growth in the region in 2023, around 13% will be supported by investment in the AI sectors, with 6 (six) main uses as follows:   Computer Vision This market focuses on technology that helps computers make sense of digital images and videos. Machine Learning Algorithms teach computer systems to learn from data. Natural Language Processing Deals with technology enabling computers to understand and generate human language. AI Robotics Combining AI, machine learning, and engineering, to create intelligent machines capable of independent tasks. Autonomous & Sensor Technology Machines and systems equipped with sensors and AI operate independently, responding to changes in their environment. Generative AI Involving the creation of models that produce new content like images and text, often indistinguishable from human-created content.   With those various implementations, IP stakeholders must anticipate AI developments because they impact administration, practice, protection, and law enforcement. In particular, AI will confuse IP owners, consultants, and government officials if the laws on Copyright, Trade Secrets, Industrial Designs, Patents, and Trademarks are not changed.   Because AI, on the one hand, is very promising but also dangerous, depending on who uses it. In the UK and the US, there have been more than 10 cases of lawsuits against Generative AI-based companies. For example, OpenAI, the company that created ChatGPT, was deemed to have violated Copyright because it used many well-known works and media news as learning material for its AI system without permission.   Utilization of AI for IP Violations   If ChatGPT argues that the use of the work is for learning and can be settled with royalty payments, in practice, many other uses of AI can be categorized as legal violations, namely: Fabricate, forge, falsify images, certificates, documents, and create deepfakes videos; Create/manufacture realistic counterfeit labels and packaging; Clean up language, grammar, misspellings, and awkward phrasing on labels, packaging, advertising, websites; spam/phishing emails, which were often dead giveaways of counterfeit goods made in a foreign country; and Allow hackers to break into networks through emails that trick recipients into sharing personal info or accessing them illegally.   Benefits of AI in the IP Landscape However, AI is of great benefit to IP law enforcement. Starting from maximizing IP Consultants’ work and the border enforcement process to law enforcement officers.   Maximizing the Work of IP Consultants: Conducting searches and analysis of prior art and IP registration databases more efficiently and accurately; Streamlining contract analysis by extracting and categorizing relevant information, saving time and allowing attorneys to focus on negotiating and drafting contracts; Enabling faster identification of potential conflicts, enhancing due diligence, assisting in determining protection or infringement issues; and application drafting to improve productivity/reduce costs.   Benefits of AI for IP Law Enforcement: Monitor online platforms, websites, and social media for unauthorized use of IP, enabling proactive enforcement by owners; Identify instances of infringement on digital platforms by comparing content or marks against databases of brands, designs, or works; and Assist IP research and litigation by analyzing legal texts, court decisions and precedents, case strategy development, and outcome predictions from historical data. AI is being integrated into the criminal justice process, from crime prevention to evidence analysis. It can assist courts in making sentencing decisions and assess the likelihood of future criminal behavior, thereby informing parole, probation, or release decisions. It can enhance efficiency, accuracy and fairness, but bias, transparency, and ethics concerns have been raised and will continue to be raised as AI technologies become more pervasive and invasive. Benefits of AI for Border Enforcement: Drawing insights and patterns from customs databases, market reports, trade statistics, and IP owner-provided product identification materials; Automatically identifying objects in streaming video and imagery; and Providing real-time alerts to operators when an anomaly is detected, enhances the ability to stop illicit and illegal goods from entering the country.   In the end, new regulations are needed to adapt to AI developments. These regulations should start with rules related to ownership of rights involving AI, rules governing coordination between stakeholders, competition, and privacy, and rules governing resolution and legal enforcement of any disputes that may occur. Only with clear rules can conducive growth be created before the next technological wave finally emerges.   If you require further information regarding the impact of AI on Intellectual Property, please do not hesitate to contact us via email at [email protected].