The moderating role of IPR on the relationship between country-level R&D and individual-level entrepreneurial performance
- 47 Downloads
Using recent data drawn from the European Working Conditions Survey for 32 European countries, we explore the relationship between country-level expenditures on R&D, Intellectual Property Rights (IPR), and individual-level entrepreneurial performance as measured by earnings. Our results show that both R&D expenditures and IPR are positively associated with earnings (and hence the quality) of individual entrepreneurs. However, we also find an intriguing moderation effect in the sense that IPR reduces the positive relationship between country R&D and entrepreneurial earnings. This suggests that too strict IPR legislation may hamper the diffusion of knowledge created by R&D. Hence, governments need to carefully consider the level of IPR they want to install, especially in countries with high R&D expenditures.
KeywordsExpenditure on R&D Intellectual property rights Entrepreneurship Self-employment Earnings European Working Conditions Survey
All authors contributed equally to the manuscript. The authors would like to thank Andrew Burke, the guest editors—Maribel Guerrero and David Urbano—, and two anonymous reviewers for their insightful comments that contributed substantially to the development of this paper. This paper is part of Serhiy Lyalkov’s doctoral dissertation, which has been written under the framework of the PhD Program in Economics, Business, Finance and Computer Science at the University of Huelva and the International University of Andalusia, Spain.
This work was supported by the Spanish Ministry of Economy and Competitiveness (Ministerio de Economía y Competitividad) under Grants number ECO2017-86305-C4-2-R and ECO2017-86402-C2-2-R; Regional Government of Andalusia (Junta de Andalucía) through Research Group SEJ-487 (Spanish Entrepreneurship Research Group—SERG); and University of Huelva through Research and Transfer Policy Strategy (Estrategia de Política de Investigación y Transferencia) 2018.
Compliance with ethical standards
Conflict of interest
The authors declare no conflict of interest.
- Aghion, Ph, & Howitt, P. (1998). Endogenous growth theory. Cambridge: MIT Press.Google Scholar
- Browne, C., Di Battista, A., Geiger, T., & Gutknecht, T. (2014). The executive opinion survey: The voice of the business community. In K. Schwab (Ed.), The global competitiveness report 2014–2015 (pp. 85–96). Geneva: World Economic Forum.Google Scholar
- De Soto, H. (2000). The mystery of capital: why capitalism triumphs in the west and fails everywhere else. New York: Basic Books.Google Scholar
- Elschner, C., Ernst, C., Licht, G., & Spengel, C. (2011). What the design of an R&D tax incentive tells about its effectiveness: A simulation of R&D tax incentives in the European Union. The Journal of Technology Transfer, 36(3), 233–256. https://doi.org/10.1007/s10961-009-9146-y.CrossRefGoogle Scholar
- Eurofound (2012). Fifth European working conditions survey—overview report, publications office of the European Union, Luxembourg. https://www.eurofound.europa.eu/sites/default/files/ef_publication/field_ef_document/ef1182en.pdf. Accessed 1 Apr 2019.
- Eurofound (2016). Sixth European working conditions survey–overview report, publications office of the European union, Luxembourg. https://www.eurofound.europa.eu/sites/default/files/ef_publication/field_ef_document/ef1634en.pdf. Accessed 1 Apr 2019.
- Eurofound (2018). European working conditions survey integrated data file, 1991–2015. [data collection]. 7th edn. UK Data Service. SN: 7363. http://doi.org/10.5255/UKDA-SN-7363-7.
- European Commission (2017). The economic rationale for public R&I funding and its impact. Brussels: European Commission. https://ri-links2ua.eu/object/document/326/attach/KI0117050ENN_002.pdf. Accessed 1 Apr 2019.
- Hall, B. H., Mairesse, J., & Mohnen, P. (2010). Measuring the returns to R&D. In B. H. Hall & N. Rosenberg (Eds.), Handbook of the economics of innovation (Vol. 2, Chapter 24, pp. 1033–1082). https://doi.org/10.1016/S0169-7218(10)02008-3.
- Henrekson, M., & Sanandaji, T. (2018). Schumpeterian entrepreneurship in Europe compared to other industrialized regions. International Review of Entrepreneurship, 16(2), 157–182.Google Scholar
- Krieger, B., Licht, G., & Pellens, M. (2018). New perspectives in European innovation policy. ZEW policy brief, No. 7/2018. Mannheim: Zentrum für Europäische Wirtschaftsforschung (ZEW). http://hdl.handle.net/10419/183222. Accessed 1 Apr 2019.
- OECD (2018). Gross domestic spending on R&D (indicator). http://dx.doi.org/10.1787/d8b068b4-en. Accessed 1 Apr 2019.
- Park, W. G., & Ginarte, J. C. (1997). Intellectual property rights and economic growth. Contemporary Economic Policy, 15(3), 51–61. https://doi.org/10.1111/j.1465-7287.1997.tb00477.x.CrossRefGoogle Scholar
- Thompson, M.A., & Rushing, F.W. (1996). An empirical analysis of the impact of patent protection on economic growth. Journal of Economic Development, 21(2), 61–77. http://jed.or.kr/full-text/21-2/4.pdf. Accessed 1 Apr 2019.
- Thompson, M.A., & Rushing, F.W. (1999). An empirical analysis of the impact of patent protection on economic growth: An Extension. Journal of Economic Development, 24(1), 67–76. http://jed.or.kr/full-text/24-1/thompson.PDF. Accessed 1 Apr 2019.