The role of Intellectual Property as a tool for business development in the informal economy of Ghana.

Innovation has become one of the main drivers of economic growth and development making its protection the focus of contemporary economic strategies. Intellectual Property (IP) protects and promotes innovation. The IP system strives to create an environment where creativity and innovation thrive by finding a suitable equilibrium between the interests of innovators and the broader public interest. Although IP has been shown to play a particularly important role in formal‐economy innovation, its role in the informal economy (IE) has been less explored. This study therefore sought to interrogate the utilisation of IP in the IE of Ghana and the role it plays in business development and competitiveness. This was achieved by determining innovative capacity, IP knowledge uptake/awareness, utilisation and challenges as well as discussing the policy approaches and institutional mechanisms necessary to promote growth and development of the IE for national gain. A qualitative research design was adopted and using the purposive sampling method, a sample of 100 respondents from two metropolitan districts in Ghana was selected. The findings revealed that 72% of the informal businesses studied had developed new products, processes or methods. Although 53% of the respondents had heard of or were conscious of the existence of some words relating to IP such as 'copyright' and 'trademarks', the respondents had little practical understanding of IP as a subject matter relevant for business. Only 19% out of the total number of respondents had acquired formal IP rights while most of the businesses employed other appropriation mechanisms outside of the use of conventional IP tools in protecting knowledge and innovation. Challenges to IP acquisition identified include financial constraints, lack of appreciation for the value of IP for business and the difficulty in meeting registration requirements. The study concluded that the IE is innovative and the utilisation of various IP tools such as trademarks, industrial designs, copyright and utility models were identified to be desirable to be employed in the pursuit for business development. It is recommended that decision making bodies such as the national IP office must establish effective policies aimed at promoting awareness and utilisation of IP rights in the IE. The government should also institute incentives such as cost waivers that are needed to stimulate innovation and creativity and create an enabling environment that supports the acquisition of IP for development and growth of the IE. [ABSTRACT FROM AUTHOR]