Imitation and innovation driven development under imperfect intellectual property rights

► North-South model with southern innovation and imitated southern goods. ► Analysis of innovation threshold & discrimination vs. national treatment in IPRs. ► Threshold depends on southern R&D efficiency & protection of home and foreign goods. ► Discriminatory policies benefit both regions if there is southern R&D. ► National treatment IPRs beneficial with southern R&D, harmful without.