TRIPS, TRADE, AND GROWTH

A two country model of endogenous growth is employed to assess the imp ortance of intellectual property fights to trade, growth, and technolo gy transfer. The paper provides theoretical results linking the intell ectual property rights regime to trade patterns, aggregate R&D, worldw ide growth, and aggregate welfare measures. Failure to provide patent protection for foreign made innovations forces innovators to employ le ss than the best practice research technologies, reduces aggregate R&D activities worldwide, effectively eliminates technology transfer acro ss countries, and reduces worldwide growth.