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n 50 years, the rapid globalization of the past decades will be described in many different ways. But how smartphones and computers connected the world, even in the most remote provinces, is sure to be one of the most important imprints of this generation. This story does not end there as the devices that connect the different parts of the world are also made of components assembled from different countries of the world.

In the 1990s, electronics was an exclusive affair for the richest nations: Walkmans, CD players and IBM PCs were made by (and made for) just a handful of countries like the US, Japan, Western European countries and Canada. This trade among themselves accounted for 40 percent of all trade in electronics whereas nowadays, developing countries are involved in three-quarters of all information and communication technology (ICT) trade.

Better logistics has made it possible for IT giants like Apple, HP and Microsoft to buy from specialized component suppliers wherever they are located. To take one example, the parts inside an iPhone travel across a hundred borders in the production before they are assembled and shipped to the user.

One of the biggest winners of globalization is Indonesia. Its export of telecom and audio-visual devices have increased fifty percent in just five years, which is equal to China'€™s astronomic growth, and the openness of the global trading system is paramount to Indonesian economic development. The ICT industry is now one of the most expansive employers in the country, and accounting for six percent of all the GDP-driven activities in Indonesia.

The recent proliferation of international trade agreements '€“ like Indonesia'€™s integration with ASEAN, or the free trade agreements with countries like Japan, China and Korea '€“ is securing this economic boost; Customers of Indonesia-made electronics are literally everywhere in the world, and lower tariffs for Indonesian exporters are instrumental to more jobs and investments.

In fact, duties, licenses and taxes in Europe, the US and China are effectively stopping Indonesian electronics to reach the customers. Two recent issues in global politics seek to address this problem.

Over the summer, a global trade deal, the IT Agreement in the World Trade Organization (WTO), was negotiated to effectively abolish the remaining duties in consumer electronics and IT equipment. However, the agreement was temporarily stalled by China and Europe for fears imports from Southeast Asian competitors may threaten their local production of televisions. However, it is widely expected that a compromise can be reached later this year.

A second, more complex issue concerns innovation and patents. There have been many news reports about how the giants in the tech industry have been drawn into '€˜smart phone wars'€™, where they sue each other for patent infringements.

In recent years, these lawsuits have become a much bigger concern than import duties. Smartphone patents do not yet threaten the emerging countries, as these lawsuits are primarily about smart phone designs and software that rarely affect the Indonesian industry that focus on manufacturing and engineering.

However, other patent issues affect Indonesia. Companies collect license fees for using technical standards that were developed decades ago. These so-called patent pools that collect license fees for those seeking to use the technology standard. This is not a problem in itself.

In fact, the existence of global standards is essential for emerging economies to exports, as standards ensure Indonesian products work in other markets. However, if the licenses are not offered on reasonable market terms, they could block new competitors from entering the market.

For example, the MPEG-2 video-encoding standard is used to digitally store or display video on most electronic devices and collect license fees from any manufacturer of DVDs, PCs, laptops or TV decoders. MPEG-2 is exclusively licensed by the United States based for profit MPEG LA.

Unfortunately many new market innovators often from emerging markets like Indonesian innovators are forced to pay unreasonably high licensing fees to gain access to these standards.

Critics are also quick to point out that a near majority of the patents within the MPEG-2 package have or will very soon expire -- and artificially extended beyond their term of protection by being incorporated into an '€œall or nothing'€ package deal. Chinese manufacturers of audio products and major internet companies have accused MPEG LA of overcharging them, as the fees even exceeds their profit margins.

Up to two-thirds of Indonesia'€™s exports are in TVs, audio equipment and DVD players. Therefore, tariffs and license fees on consumer electronics are particularly important for the nation'€™s development towards more technology jobs, and eventually creating its own export brands.

Securing free market competition at home and abroad is just as important as investing in innovation. Indonesia is a regional leader with a strong influence on the global trading system that will use it to secure trade agreements in its interest.

Furthermore, Indonesia'€™s competition law and the Commission for the Supervision of Business Competition (KPPU) was the first in the ASEAN region and have been in place for more than a decade, promoting national economic efficiency and development. Indonesia'€™s future as an IT nation is now dependent on its trade and competition policies.