We develop a model with one innovating northern firm and heterogeneous southern firms that compete in a final product market. We assume southern firms differ in their ability to adapt technology and study southern incentives to protect intellectual property rights. We find that, in a non-cooperative equilibrium, governments resist IPR protection, but collectively southern countries benefit from some protection. We show that, in general, countries with more efficient firms prefer higher collective IPR protection than those with less efficient firms. Given the aggregate level of IPR protection, it is more efficient if the more efficient countries have weaker IPR protection.
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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number
12549.
Length: 30 pages Date of creation: 23 Mar 2006 Date of revision: Publication status: Published in Canadian Journal of Economics, August 2008, Vol. 41, No. 3, pp. 894-925. Handle: RePEc:isu:genres:12549
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Find related papers by JEL classification: F1 - International Economics - - Trade O3 - Economic Development, Technological Change, and Growth - - Technological Change
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