Abstract
This study examines the relationship between intellectual property rights (IPR) protection and economic growth using cross-country data from 1960 to 1988. From an economic theory point of view, there exist two types of arguments. One side opines that strong IPR protection serves as a catalyst for economic growth by enhancing competition and innovation. The other side argues that strong IPR protection allows incumbents to raise significant barriers to entry, thus hindering innovation and ultimately economic growth. Empirical evidence suggests that stronger IPR protection has a significant positive impact on per capita GDP growth. The results imply that while the role of IPR in economic growth varies by trade regime, open economies benefit slightly more from robust IPR protection. However, these effects are not always statistically significant.
