Hwang, HongHongHwangWu, Jollene Z.Jollene Z.WuYu, Eden S. H.Eden S. H.Yu2018-09-102018-09-102016http://www.scopus.com/inward/record.url?eid=2-s2.0-84955594098&partnerID=MN8TOARShttp://scholars.lib.ntu.edu.tw/handle/123456789/398617This paper sets up a vertically related market model in which imitation and innovation are endogenously determined to study the impact of intellectual property rights (IPR) protection on less-developed countries. It shows how a less-developed country switches from imitation to innovation as it develops. It is also found that the relationship between IPR protection and economic development is U-shaped. The IPR protection tends to go down and then go up as income rises. This finding also conforms with that in the empirical literature on IPR protection. © 2016 John Wiley & Sons Ltd.[SDGs]SDG8[SDGs]SDG17developing world; economic development; imitation; income; innovation; intellectual property rightsjournal article10.1111/rode.12205