Intellectual Property Rights as a Catalyst for Innovation and Competitive Advantage in the Digital Economy: A Quantitative Analysis

Abstract

This study investigates the role of intellectual property rights (IPR) management as a catalyst for innovation and competitive advantage within the digital economy. We employed a quantitative cross-sectional design across 180 organizations, collecting data from 981 valid respondents through structured questionnaires and secondary sources. The analysis utilized multiple linear regression, structural equation modeling, and confirmatory factor analysis to examine relationships among IPR management, R&D investment, digital innovation adoption, knowledge management, and organizational performance. Our results indicate that comprehensive IPR management significantly predicts innovation performance (β = 0.46, p < 0.001), with the overall model explaining 75.8% of the variance. A strong positive correlation emerged between IPR management and innovation performance (r = 0.83, p < 0.001). Furthermore, organizations with robust IPR strategies demonstrated 29.3% higher innovation performance, 25.7% greater technology commercialization, and 24.6% stronger competitive advantage compared to those with limited practices. The structural equation model exhibited excellent fit indices (CFI = 0.98, RMSEA = 0.043). The novelty of this research lies in its integrated framework that quantifies the synergistic effects of patent protection, copyright management, trademarks, and digital strategies on organizational outcomes. We conclude that effective IPR management serves as a fundamental driver of sustainable competitive advantage in digitalized markets. These findings provide actionable insights for policymakers and organizational leaders seeking to optimize intellectual property governance, thereby fostering innovation-led growth in the digital economy. The study contributes to the literature by empirically validating the mediating role of knowledge management and technology commercialization in the IPR–innovation nexus