| Popis: |
This paper investigates the effect of seizing illegal imitations within developing countries on imitation, innovation, and economic growth. The model shows four main results. First, a higher seizure rate does not always decrease imitative activity in the South because it may encourage the infringer to commit repeated offenses. Second, the model shows a U-shaped relationship between innovation and the strengthening seizure rate. Third, numerical analysis indicates that a sufficiently high seizure rate that is larger than a critical value is required to enhance economic growth. Finally, unlike seizure, the extended model shows that a prohibition on importing Southern illegal imitations in the North necessarily lowers imitative activities. |
