We show that if patent protection and trade secrecy generate asymmetricmarket structure, an innovator may prefer patent protection than trade secrecy even ifthe diffusion probability is higher under the former but it increases marketconcentration by preventing some imitators...

Significant amount of vertical technology transfer occurs betweendeveloped and developing country firms, yet the literature on intellectual propertyrights did not pay much attention to this aspect...

Whether higher productivity of the foreign firm increases host countrywelfare depends on whether the reason for foreign direct investment (FDI) is to savethe trade cost or to get the advantage of cheap labor. We show that, if the reason forFDI is to get the advantage of cheap labor, higher...