PROTECTION OF INTELLECTUAL PROPERTY RIGHTS: RESEARCH AND DEVELOPMENT DECISIONS AND ECONOMIC GROWTH

Determining the appropriate degree of protection to provide intellectual property in the United States and abroad is an important public policy issue. This paper addresses the role of intellectual property protection in the firm's decision on the level of investment in research and development. It also focuses on the stimulus that such protection provides for economic growth in both developed and developing countries. The main conclusion is that the benefits of designing and enforcing a mechanism for strong protection of intellectual property generally exceed the costs.