The effect of raising the Australian statutory inventive step on the Australian global production system

• Paul H. Jensen, Alfons Palangkaraya, Elizabeth Webster, Jongsay Yong
• Intellectual Property Research Institute of Australia

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03 September 2008This paper analyses the effect of raising the inventive step requirements in the Patents Act 1990 on Australia?s position in the global supply chain. In particular, it considers the likely effects on the intentions of foreign multinational enterprises (MNEs) to invest in Australia and the ability of Australian businesses to compete in the global market.

The authors provide a brief background discussion on the nature of global production, that is,
what determines whether an MNE will choose to undertake foreign direct investment in Australia
and the factors determining the revealed inventive step. For each affected party ? domestic inventors,
foreign MNEs and rivals of these two groups ? theyconsider the likely effects on behaviour under four
sets of stylised circumstances.