This paper reviews theoretical and empirical literature that originated predominantly during and after TRIPS, focusing on the influence of changes in patent protection on developing countries. Previous studies identify two channels of gain for developing countries, from strong patent rights. Firstly, the promotion channel whereby, patent rights affect innovativeness of the South and concomitantly its economic growth. Theoretical studies do not give unambiguous hypotheses concerning the influence of patent protection on domestic innovation leaving it for empirical investigation.