Evaluating the Confluence of Intellectual Property Rights, Innovation Systems, and Competitive Advantage: A Cross-Sectoral Examination of Economic, Technological, and Policy Impacts in the Context of Globalization and Digital Transformation

Abstract

This study explores the intersection of intellectual property rights (IPRs), innovation systems and competitive advantage, particularly in the context of globalization and digital transformation. It examines the role of IPRs in fostering innovation, their impact on sector dynamics and how digital transformation is reshaping innovation systems. By focusing on industries such as technology, pharmaceutical products and creative sectors, research highlights the strategic use of DPI mechanisms such as patents, copyrights and brands to protect innovations and obtain a competitive advantage. The study also examined the challenges posed by the digital era, including questions in the application of DPIs, digital hacking and the rise of decentralized innovation models. A mixed-methods approach combining qualitative and quantitative analysis was used to gather information through literature reviews, case studies and expert interviews. Main findings suggest that while intellectual property rights play an important role in promoting innovation, a balance between protection and open innovation is important, especially in high-growth sectors. This study also determined the gap between compliance and local policies, and confirmed the need for an international frame that was in harmony. This study concludes that promoting the adaptation and cooperation of the IPR law to digital environments is important for maintaining future innovation and competitive advantages.