, such as legal origin and patent protection, in order to allow for parameter heterogeneity based on a country …

by building a unique dataset uniting detailed firm balance sheet information with firm patent data for the period of 1998 …-2007. We find strong evidence that within-firm increases in patent stock are associated with increases in firm size, exports … also demonstrate similar effects following initial patent application. We also find that although state-owned enterprises …

innovation, but once discovery takes place there is an incentive to lower protection. The sub optimal but time consistent policy … involves an insufficient level of protection and, therefore, of innovation. In more technologically advanced economies … participation in the World Trade Organization, or, more controversially, some form of bilateral punishment, may be used …