innovators who seek to discover higher quality products and thereby replace the patent holder. Second, they deter imitators who … seek to capture a portion of the monopoly market by imitating the patent holder’s product. The extent of IPR protection is … the form of a larger subsidy to RPAs. We find that a larger RPA subsidy unambiguously increases the patent holder’s market …

distorts occupational choice. We study this possibility in the context of a model with horizontal innovation, where the …