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Patents, knowledge spillovers, and entrepreneurship

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  • Zoltan Acs

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  • Mark Sanders

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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

Suggested Citation

  • Zoltan Acs & Mark Sanders, 2012. "Patents, knowledge spillovers, and entrepreneurship," Small Business Economics, Springer, vol. 39(4), pages 801-817, November.
  • Handle: RePEc:kap:sbusec:v:39:y:2012:i:4:p:801-817 DOI: 10.1007/s11187-011-9322-y
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    Cited by:

    1. repec:krk:eberjl:v:4:y:2016:i:1:p:129-159 is not listed on IDEAS
    2. Alexandra Tsvetkova, 2015. "Innovation, Entrepreneurship, and Metropolitan Economic Performance," Economic Development Quarterly, , vol. 29(4), pages 299-316, November.
    3. Asongu, Simplice, 2017. "Mobile Phone Innovation and Technology-driven Exports in Sub-Saharan Africa," MPRA Paper 84040, University Library of Munich, Germany, revised May 2017.
    4. 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.
    5. Zoltán J. Ács & Mark W. J. L. Sanders, 2015. "Knowledge spillover entrepreneurship in an endogenous growth model," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 10, pages 174-194 Edward Elgar Publishing.
    6. repec:kap:sbusec:v:49:y:2017:i:1:d:10.1007_s11187-017-9866-6 is not listed on IDEAS
    7. Furukawa, Yuichi & Lai, Tat-kei & Sato, Kenji, 2017. "Receptivity and Innovation," MPRA Paper 81536, University Library of Munich, Germany.
    8. Pontus Braunerhjelm & Ding Ding & Per Thulin, 2016. "Labour as a knowledge carrier: how increased mobility influences entrepreneurship," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1308-1326, December.
    9. Zoltán J. Ács & Mark W. J. L. Sanders, 2015. "Knowledge spillover entrepreneurship in an endogenous growth model," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 10, pages 174-194 Edward Elgar Publishing.
    10. Haifeng Qian & Hyejin Jung, 2017. "Solving the knowledge filter puzzle: absorptive capacity, entrepreneurship and regional development," Small Business Economics, Springer, vol. 48(1), pages 99-114, January.
    11. repec:kap:sbusec:v:49:y:2017:i:1:d:10.1007_s11187-016-9822-x is not listed on IDEAS
    12. Niccolò Ghio & Massimiliano Guerini & Erik Lehmann & Cristina Rossi-Lamastra, 2015. "The emergence of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 1-18, January.
    13. repec:bla:coecpo:v:35:y:2017:i:4:p:700-715 is not listed on IDEAS

    More about this item

    Keywords

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

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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