Significant amount of vertical technology transfer occurs between developed and developing country firms, yet the literature on intellectual property rights did not pay much attention to this aspect. We show that whether or not the incumbent and the entrant final goods producers are from the same developed country, patent protection in the developing country raises developed-country welfare if (i) patent protection in the developing country deters entry in the final goods market, (ii) the marginal cost difference between the incumbent and the entrant final goods producers is sufficiently small, and (iii) the marginal cost difference between the incumbent and the entrant developing-country firms is sufficiently high.
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Paper provided by University of Nottingham, School of Economics in its series Discussion Papers with number
09/05.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Taylor, M Scott, 1994.
"TRIPs, Trade, and Growth,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(2), pages 361-81, May.
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