Intellectual property rights and foreign direct investment: A welfare analysis
用一个南北质量阶梯模型，研究知识产权保护如何影响创新和外国直接投资，发现加强保护能促进两者，并在南方保护弱且研发补贴不高时改善福利。
This paper examines how intellectual property rights (IPR) protection affects innovation and foreign direct investment (FDI) using a North–South quality-ladder model incorporating the exogenous and costless imitation of technology and subsidy policies for both R&D and FDI. We show that for the interior steady state to be stable, either R&D or FDI subsidy rates must be positive. Our findings also indicate that strengthening IPR protection promotes both innovation and FDI. Moreover, a strengthening of IPR protection can also improve welfare if the initial IPR protection in the South is weak and the R&D subsidy rate is not too high.