Intellectual properly right (IPR) protection provides incentives for innovation and consequent spillover benefits for the global economy, but it may also have anti-competitive effects. Economic theory has only recently addressed the international trade flow implications of different IPR protection regimes—including those consistent with the TRIPS agreement. The theory suggests IPR protection offers grounds for both conflict and congruence between net technology importers (mostly developing countries) and net technology exporters. Empirical evidence suggests that IPR protection influences trade and investment flows, but that economic impacts vary across nations and industries. Debate continues over crucial measurement issues.