This study develops an R&D-based growth model that features both vertical and horizontal innovation to shed some light … on the current debate on whether patent protection stimulates or stifles innovation. Specifically, we analyze the growth … ladder. We show that patent protection has asymmetric effects on vertical innovation (i.e., quality improvement) and …

own innovation. The analysis predicts that the willingness to enforce IPR is U-shaped in a country GDP: small … enforcement of IPR yields a higher level of innovation and global welfare only if the developing country does not innovate. A …