Patent Protection and Strategic Trade Policy

This paper is useful in that it succeeds in identifying and characterizing the interesting effects that exogenous variation in the degree of IPR protection can have on standard strategic trade policy arguments. In pointing out the importance of the IPR regime for understanding, the incentives to subsidize R&D, and even for predicting the sign of the optimal strategic R&D policy ,we also set the stage of future research, which models the joint determination of R&D subsides and IPR regime.