Document Type : Research Paper

Authors

• Shadi Hasanzadeh ¹
• Khadijeh Eslami ²
• Mana Farahi ³

¹ Assistant Prof., Department of Accounting, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran

² Assistant Professor, Department of Accounting, Bandargaz Branch, Islamic Azad University, Bandargaz, Iran

³ Department of Accounting, Bandargaz branch, Islamic Azad University, Bandargaz, Iran.

Abstract

Today, knowledge, innovation, and technology play a crucial role in economic growth and development. Among the key factors influencing innovation, the security of intellectual property rights stands out as both essential and challenging. This study examines the impact of intellectual property protection on innovation, considering the mediating roles of research and development (R&D) expenditures and financial constraints. The analysis covers 119 companies listed on the Tehran Stock Exchange from 2018 to 2022, using a correlation-analytical approach. The results of hypothesis testing, based on a regression model, indicate that intellectual property protection fosters innovation within companies. Additionally, R&D expenditures and financial constraints act as mediating factors in this relationship. The findings suggest that strengthening intellectual property protection shields innovators from imitation and theft, encouraging companies to invest more in innovation. By securing exclusive rights, firms can achieve higher profitability and returns on investment. Furthermore, confirming the mediating effects of R&D expenditures and financial constraints highlights that increased intellectual property protection generates positive feedback for investors, thereby reducing financial constraints. This, in turn, allows for greater budget allocation to innovation. These insights can assist policymakers, standard setters, and legislators in refining national strategies by deepening their understanding of the benefits and challenges associated with intellectual property protection. By implementing targeted incentive policies, they can encourage capital market participants to drive innovation and enhance corporate innovation activities.

Keywords

• protection of intellectual property
• innovation
• financing constraints
• research and development expenditure

Main Subjects

• Financial Accounting