Impact of Intellectual Property Laws on Innovation in the Technology Sector in Netherlands

Purpose: The aim of the study was to assess the impact of intellectual property laws on innovation in the technology sector in Netherlands. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: strong IP protections can incentivize innovation by providing legal safeguards and enabling companies to monetize their inventions. This encourages investment in research and development (R&D) and promotes the creation of new technologies. However, some studies indicate that overly restrictive IP laws may stifle innovation, particularly in sectors where rapid technological advancement is crucial. Excessive patent litigation and lengthy patent approval processes can create barriers to entry for smaller firms and startups, limiting competition and hindering innovation. Additionally, overly broad patents may discourage collaboration and hinder the development of complementary technologies. Implications to Theory, Practice and Policy: Innovation economics theory, transaction cost economics and resource-based view of the firm may be used to anchor future studies on assessing the impact of intellectual property laws on innovation in the technology sector in Netherlands. Technology firms should adopt proactive strategies to navigate the complexities of IP laws while fostering a culture of innovation within their organizations. Policymakers should strive to design IP laws that strike an optimal balance between incentivizing innovation and promoting knowledge dissemination.