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Patents, knowledge spillovers, and entrepreneurship

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  • Zoltan Acs

    ()

  • Mark Sanders

    ()

Abstract

We develop an endogenous-growth model in which we distinguish between inventors and innovators. This distinction implies that stronger protection of intellectual property rights has an inverted U-shaped effect on economic growth. Intellectual property rights protection attributes part of the rents of commercial exploitation to the inventor that would otherwise accrue to the entrepreneur. Stronger patent protection will therefore increase the incentive to do research and development (R&D) and generate new knowledge. This new knowledge has a positive effect on entrepreneurship, innovation, and growth. However, after some point, further strengthening of patent protection will reduce the returns to entrepreneurship sufficiently to reduce the overall growth rate. Copyright The Author(s) 2012

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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 39 (2012)
Issue (Month): 4 (November)
Pages: 801-817

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Handle: RePEc:kap:sbusec:v:39:y:2012:i:4:p:801-817

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Web page: http://www.springerlink.com/link.asp?id=100338

Related research

Keywords: Intellectual property rights; Knowledge spillovers; Endogenous growth; Entrepreneurship; R&D; Innovation; Invention processes; Inventions; M13; O31; O34; O41;

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References

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Citations

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Cited by:
  1. David Audretsch & Maksim Belitski, 2013. "The missing pillar: the creativity theory of knowledge spillover entrepreneurship," Small Business Economics, Springer, vol. 41(4), pages 819-836, December.
  2. Zoltan Acs & Mark Sanders, 2013. "Knowledge spillover entrepreneurship in an endogenous growth model," Small Business Economics, Springer, vol. 41(4), pages 775-795, December.

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