["Review of Development Economics, EarlyView. ", "\nABSTRACT\nWe study how ownership and pricing of intangible assets generate asymmetric macroeconomic dynamics between a core and a periphery. We develop a two‐country dynamic stochastic general equilibrium (DSGE) model in which production uses tangible capital, domestically owned intangible capital, and rented foreign intangible services; the periphery pays a knowledge rent flow to the core, which acts as a wedge in its accumulation equation. Calibrated to observed income shares and depreciation patterns, the model yields sharp qualitative predictions. Following a positive technology shock in the core, core output jumps and consumption and labor rise persistently, while the periphery sees only modest output gains and slower capital build‐up; a positive technology shock in the periphery can even reduce its output as rent payments drain resources, with only small, transitory effects in the core. A tighter repayment schedule modestly lifts core activity–mainly via consumption–while acting as a negative wealth shock in the periphery that lowers output, labor, and consumption. Sensitivity analyses–varying the periphery's intangible share and reliance on rented knowledge–preserve these qualitative rankings. Complementary evidence from OECD panels (2000–2019) using PVARs and state‐dependent local projections shows that cross‐border payments for the use of intellectual property co‐move with financing conditions and macroeconomic dynamics, consistent with the model's mechanism. Policy implications include building domestic intangible capacity, easing diffusion at fair terms, and leveraging multilateral tools to reduce effective rent exposure in the periphery.\n"]