Technology and patent impact on developing countries

Since the beginning of the 20th century, the world has witnessed technological advances on a massive scale. The miraculous transition in technology has revamped the industrialized world by replacing the obsolescent implements of production and changing the inputs combination. The new technology always begets disparate consequences of the distributional dimensions in the world economy. Innovations have led to new generation products along with new processes of production to replace the old. When outsiders in developing countries employ technology developed by a corporate unit, it entails heavy payment of royalties as specified by the trade-related aspects of intellectual property rights (TRIPs) agreement under the World Trade Organization (WTO). The invention of new and sophisticated technology takes place with the help of in-house research by large corporate houses from the advanced nations. The patenting system under the WTO magnifies the perennial egemony of the developed countries in the developing economies of the world.