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Intellectual Property Rights and the Knowledge Spillover Theory of Entrepreneurship

Author

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  • Zoltan J. Acs

    (George Mason University and Max Planck Institute of Economics)

  • Mark Sanders

    (Utrecht School of Economics and Max Planck Institute of Economics)

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.

Suggested Citation

  • Zoltan J. Acs & Mark Sanders, 2008. "Intellectual Property Rights and the Knowledge Spillover Theory of Entrepreneurship," Jena Economic Research Papers 2008-069, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2008-069
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    References listed on IDEAS

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    Cited by:

    1. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144 Edward Elgar Publishing.
    2. Liang, Jiaochen & Goetz, Stephan, 2014. "The Role of Self-Employment in Mitigating Trade Shocks of Chinese Imports on U.S. County Labor Markets," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169709, Agricultural and Applied Economics Association.
    3. Jiaochen Liang & Stephan Goetz, 2016. "Self-employment and trade shock mitigation," Small Business Economics, Springer, vol. 46(1), pages 45-56, January.
    4. Marek Vokoun, 2016. "Innovation behaviour of firms in a small open economy: the case of the Czech manufacturing industry," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, pages 111-139.
    5. Maximilian Palmié & Marco Zeschky & Stephan Winterhalter & Philipp Walter Sauter & Naomi Haefner & Oliver Gassmann, 2016. "Coordination mechanisms for international innovation in SMEs: effects on time-to-market and R&D task complexity as a moderator," Small Business Economics, Springer, vol. 46(2), pages 273-294, February.
    6. Piera Centobelli & Roberto Cerchione & Emilio Esposito, 2017. "Knowledge Management in Startups: Systematic Literature Review and Future Research Agenda," Sustainability, MDPI, Open Access Journal, vol. 9(3), pages 1-19, March.
    7. Elsa de Morais Sarmento & Alcina Nunes, 2011. "Criação de empresas em Portugal e Espanha: análise comparativa com base nos dados do Banco Mundial," GEE Papers 0036, Gabinete de Estratégia e Estudos, Ministério da Economia, revised May 2011.
    8. M. Capasso & E. Cefis & K. Frenken, 2009. "Do some firms persistently outperform?," Working Papers 09-, Utrecht School of Economics.
    9. Jiaochen Liang & Stephan J. Goetz, 2016. "Self-employment and trade shock mitigation," Small Business Economics, Springer, vol. 46(1), pages 45-56, January.
    10. Franz, Peter, 2010. "Knowledge Spillovers as a Central Element in Theories about Knowledge-Based Regional Development: Advancement in Theory and Obstacles for Empirical Research," IWH Discussion Papers 5/2010, Halle Institute for Economic Research (IWH).
    11. Yeganegi, Sepideh & Laplume, André O. & Dass, Parshotam & Huynh, Cam-Loi, 2016. "Where do spinouts come from? The role of technology relatedness and institutional context," Research Policy, Elsevier, vol. 45(5), pages 1103-1112.
    12. Zoltan Acs & Mark Sanders, 2011. "A Theory of Entrepreneurial Rents in Endogenous Growth: Implications for Regional Innovation Policies," Chapters,in: Endogenous Regional Development, chapter 8 Edward Elgar Publishing.
    13. P.H. van Dongen, 2011. "The Role and Contribution of Intellectual Property Rights in the Process of Spillover of Knowledge, Knowledge Valorization and Regional Economic Development," Chapters,in: Institutions and Regulation for Economic Growth?, chapter 4 Edward Elgar Publishing.
    14. Saurav Pathak & Emanuel Xavier-Oliveira & André O. Laplume, 2016. "Technology use and availability in entrepreneurship: informal economy as moderator of institutions in emerging economies," The Journal of Technology Transfer, Springer, vol. 41(3), pages 506-529, June.
    15. Pathak, Saurav & Xavier-Oliveira, Emanuel & Laplume, André O., 2013. "Influence of intellectual property, foreign investment, and technological adoption on technology entrepreneurship," Journal of Business Research, Elsevier, vol. 66(10), pages 2090-2101.
    16. Gurrieri, Antonia Rosa, 2013. "Networking entrepreneurs," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 193-204.

    More about this item

    Keywords

    Intellectual Property Rights; Endogenous Growth; Entrepreneurship; Incentives; Knowledge Spillovers; Rents;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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