THE EFFECT OF INTELLECTUAL PROPERTY RIGHTS ON BUSINESS INNOVATION
Abstract
ABSTRACT
This study examines the effect of Intellectual Property Rights (IPRs) on business innovation among enterprises in Maiduguri Metropolitan Council, Borno State, Nigeria. Using a descriptive survey design, primary data were collected through structured questionnaires administered to 391 respondents, comprising owners and managers of small and medium-scale enterprises (SMEs) and other innovators. The findings reveal that strong IPR enforcement significantly drives innovation (88.2% agreement), with trademarks emerging as the most registered and useful form of protection (68.3%), while patents remain underutilised (18.9%) due to high costs and complexity. Key challenges include exorbitant registration fees (93.9%), bureaucratic bottlenecks, weak enforcement mechanisms, and limited awareness. SMEs are disproportionately disadvantaged compared to large corporations, facing amidst evidence that IPRs strongly incentivise research and development (R&D) investment (R² = 0.62). Anchored on Paul Romer’s Endogenous Growth Theory, the study concludes that while IPRs serve as powerful incentives for innovation, systemic barriers in developing economies like Nigeria diminish their effectiveness, particularly for SMEs. Recommendations include fee waivers for SMEs, establishment of specialised IP courts, enhanced enforcement institutions, and integration of IP education into entrepreneurship programmes to foster an inclusive innovation ecosystem.
Keywords: Intellectual Property Rights, Business Innovation, SMEs, Enforcement, Trademarks, Patents, R&D Investment, Nigeria
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