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THE RELATIONSHIP BETWEEN INTELLECTUAL PROPERTY

ON ECONOMIC GROWTH AND THE SUSTAINABLE

BUSINESS MODEL

TRAN THI LAN PHUONG

Abstract: In recent decades, the issue of Intellectual Property rights (IPRs) protection has been at the centre of public policy debates.
Today, IPRs are recognized as an important economic mechanism, that encourages research and development (R&D), creation and
innovation in several significant ways. By systematizing the concept of IP, IPRs, business model and the nature of economic growth,
this paper summarized the role of Intellectual Property on Economic as a whole and on the sustainable business model mostly based
on some theoretical framework and empirical evidence from previous studies. This study makes three important contributions to the
empirical literature: giving some different opinions about the IP and IPRs; analyzing the nature of business model and the factors
make success business and confirming the role of IPRs on economic growth.
Keywords: Intellectual property, business model, economic growth

Received: September 6 , 2022 Theoretical framework and literature review
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Revised: November 16 , 2022
Accepted: December 3 , 2022 Business model
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Introduction
Business model definition
Every company has a business model, whether that The business model concept gained popularity during
model is explicitly articulated or not (Chesbrough, the dotcom boom of the 1990’s but mentioned more
2006; Teece, 2010). Business models with different clearly in various research studies (Zott et al., 2011). From
level of application of technology and research and the foundation of research of Zott, there have been huge
development will produce the channel through which an number of research focusing on explaining the different
entrepreneur could increase the efficiency of production perspectives of the definition of business model and also
in particular as well as boost economic outcomes (Teece, the vital role of business model in the economy. Some of
2010). In other words, business model has impact on the the most particular research studies as follows: Bieger and
situation of both the firm and the economy. Business Reinhold (2011); George and Bock (2011); Schallmo (2013)
models are required because of the features of market and Massa et al., (2017). The business model became the
economies where there is customer choice, transaction high- end corporates’ secret and the key to compete.
costs, heterogeneity amongst consumers and producers The traditional business models regarded the various
(Chesbrough, 2006). stakeholders as individual atoms, which brought a lot of
The objective of this paper is to realize the relationship drawbacks. Many domestic enterprises thought business
between business model and intellectual property by model as the internal operation mode, less considered the
initially increasing our foundational understanding of need to use other resources and assets, which hindered
the business model concept. The paper also analyzes the rapid development of enterprises.
the effect of IPRs on economic growth by giving While defining the business model concept has been
the nature of IPRs and implies the channel through among the first tasks of early researchers (Osterwalder et
which some elements of IPRs boost the economic al., 2005), the definitions have been subjects to much debate
development. The approach of giving two areas of the (Pateli, 2004) and a general accepted definition has not
concept of business model including business model yet emerged (Morris et al., 2005; Zott et al., 2011). Table 1
definitions and business model elements are important provides an overview of some of the prominent definitions
for the conceptualization of business models. These over time. We need first explore these definitions and
views of business models have been a core focus of highlight some of the similarities and differences to
research (Ockwell et al, 2016; , 2004). In this paper, increase our understanding of the business model concept.
the business model is defined as the value logic of an Thereafter, we will specific zoom into the notion of value
organization in terms of how it creates and captures creation. We will end this section with a working definition
customer value and can be concisely represented by an explicitly targeting customer value and some specific
interrelated set of elements that address the customer, considerations that need to be taken into account when
value proposition and economics dimensions. developing or using business model definitions.

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