Intellectual Property Rights and the Knowledge Spillover Theory of Entrepreneurship

Zoltan J. Acs, () and Mark Sanders
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Mark Sanders: Utrecht School of Economics and Max Planck Institute of Economics

No 2008-069, Jena Economic Research Papers in Economics from Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek

Abstract: We develop a model in which stronger protection of intellectual property rights has an inverted U-shaped effect on innovation. Intellectual property rights protection allows the incumbent firms to capture part of the rents of commercial exploration that would otherwise accrue to the entrepreneurs. Stronger patent protection will increase the incentive to do R+D and generate new knowledge. This has a positive impact on entrepreneurship and innovation. However, after some point, further strengthening patent protection will reduce the returns to entrepreneurship sufficiently to reduce overall economic growth.

Keywords: Intellectual Property Rights; Endogenous Growth; Entrepreneurship; Incentives; Knowledge Spillovers; Rents (search for similar items in EconPapers)
JEL-codes: J24 L26 M13 O3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-ent, nep-ino, nep-ipr, nep-knm, nep-mic and nep-tid
Date: 2008-09-11
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Related works:
Working Paper: Intellectual Property Rights and the Knowledge Spillover Theory of Entrepreneurship (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:jrp:jrpwrp:2008-069

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