How does patent system contribute to technology development?

There is a great asymmetry in R&D effort between the developed and the developing countries. Presently developed countries account for 96% of the global expenditure on R&D. In developing countries, R&D is mainly funded by government or agencies of the government, and most of the research is carried out at the publicly funded universities or research institutions.

An often felt lacuna in a system where R&D is largely funded by public sector is that research results remain at the bench-scale, and are not taken through up-scaling to a level where they could be brought into the production system and generate wealth for the national economy. As the vital lap from invention to innovation requires much larger funds than were required for the R&D for the invention, the research institution/university needs involvement of a commercial partner, who is usually to be a private party. For this to happen it is necessary to forge an alliance between the researchers in the university system and the public-funded laboratories on the one hand, and the industry on the other. This relationship should be facilitated by the government policy for indigenous technology development as an essential component for the growth of the national economy.

The first step in the transfer of a newly developed technology from the laboratory to the industry is that the researchers and the research institution must have a motivation to do so, and ________ _________ ______ ____ ______.
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