This paper investigates the equilibrium dynamics of an economy where two production technologies are available: One is a primitive production technology which realizes constant returns to scale, and the other is an advanced technology, which exhibits increasing returns to scale due to...

The growth effects of intellectual property right (IPR) protection are examined in a quality-ladder model of endogenous growth. Stronger IPR protection, which reduces the probability of imitation, raises the reward for innovation. However, stronger protection reduces the number of competitive...