In a nutshell, the evidence suggests that the nature of ITT and appropriate policies
follow a technology ladder. Many middle-income developing countries are at the
duplicative imitation stage, hoping to absorb free or cheap foreign technologies into
labor-intensive export production and evolve higher value-added strategies over time.
The poorest countries have barely stepped onto this stage of the ladder. This suggests a differentiated approach is needed for policy and multilateral rulemaking. Specifically, the policy priority—both national and foreign—in poor countries with weak institutions and limited R&D capacity is to improve the business environment, with liberal trade policies
to encourage imports of technology embodied in goods. Such countries should be exempt from strong IPR obligations and have access to mechanisms to reduce the cost of imports of IPR-protected goods. This could be achieved through either a direct subsidy or a differential pricing scheme.