The previous research has not reached a consensus on whether the protection of intellectual property rights (IPR) stimulates innovation, especially in the digital era. And due to the lack of exogenous variation of copyright statute, solid evidence on the causal effect of copyright protection is...

This study develops an R&D-based growth model with taxation to explore the heterogeneous effects of intellectual property rights (IPR) protection on innovation of firms with different tax rates. Our theoretical analysis shows that strengthening IPR stimulates innovation, and a higher tax rate...