Endogenous growth and intellectual property rights: A north–south modeling proposal

In this paper, we develop a general equilibrium endogenous growth model that emphasizes the IPR enforcement effects on growth, in a scenario of north–south technological knowledge diffusion. The economy consists of three sectors, and firms are engaged in step-by-step innovation. In line with the literature, we introduce an IPR parameter that makes imitation more difficult. We find that, in steady state, the increases in IPR protection result in decreases in the growth rate. This result is in line with the literature, which argues that the enforcement of IPR does not always have a positive effect on economic growth. To sum up, we present some suggestions for future research which can help to clarify the relationship between IPR and endogenous growth. •We develop a model that stresses the IPR enforcement effects on endogenous growth.•North–south trade, vertical R&D and IPRs are considered.•The increases in IPR protection result in decreases in the growth rate.•Suggestions to clarify the relationship between IPR and growth are presented.