The Role of Intellectual Property in Ghana’s Growing Startup Ecosystem: How IP Protection Fosters Innovation and Entrepreneurship

1. Introduction

Policymakers and development stakeholders have long recognized the importance of innovation in the growth of industrial activity and the overall success of an economy since the industrial revolution of the 19th century (Abdu and Jibir, 2018). Innovation could be defined as a novel idea, method, or product creation that adds value to an organization or society (Baranskaitė and Labanauskaitė, 2020). Innovation is globally acclaimed as a tool for economic growth, competition, and social development. Innovation naturally generates the potential to develop solutions for problems in a new manner and meet new needs through enhanced or improved solutions. Soete and Stephan (2004) noted that the three basic sources of growth in any economy are growth in inputs of production, improvements in the efficiency of allocation of inputs across economic activities, and innovation that generates new products, new uses for existing products and brings about increases in the efficiency of use of inputs. The implication is that innovation can aid in the production of goods and services, enhance the establishment of businesses, and improve economic growth. Usman and Vanhaverbeke (2017) noted that innovation is not only important to big businesses but also to startups and small business groups that are trying to carve out niches in oligopolistic markets, especially in the era of globalization and digital technology. It could be inferred that innovation is a tool for entrepreneurship.

Entrepreneurship is defined as the method by which individuals recognize opportunities, gather resources, and assume calculated risks to form and grow new enterprises, and is universally accepted as a foundation of economic growth (Mokaya et al., 2012).  According to Kobia and Sikalieh (2010), entrepreneurship is not necessarily firm creation; it's innovation, it's survival, and surviving uncertainty. Chaurasia (2022) emphasizes the relationship between innovation and entrepreneurship by stating that entrepreneurs are innovators, change agents, and problem solvers who create jobs, introduce new products and services into the market, and stimulate productivity. The 21st-century economy is a more complex and competitive market; as such, entrepreneurs are forced to innovate and differentiate their products and services, and guard their innovations to ensure growth and sustainability (Mishra et al., 2023). In essence, successful entrepreneurship is highly linked with technological innovation and creativity.

The foregoing reveals a strong relationship between entrepreneurship and innovation.  In Ghana, innovation and entrepreneurship are now at the center of national development planning, especially with the country experiencing the challenge of youth unemployment, a total dominance of the informal economy, and minimal industrialization (Amankwah-Amoah and Lu, 2019). Entrepreneurship is a major means by which the youth in Ghana are becoming more and more involved in economic empowerment and self-expression. (Amankwah-Amoah and Lu, 2019).  Entrepreneurial enterprises are creating solutions that are geographically oriented, confronting local challenges in addition to world-class opportunities in the field of technology, healthcare, agriculture, and arts (Mensah et al., 2019). Even as this essence of entrepreneurship is full of enthusiasm and promise, there are enormous chasms in the institutional infrastructure needed to protect and nurture such innovation. Most startups lack legal and organizational shields that would enable them to reap maximum benefit from their innovative activities, predominantly Intellectual Property (IP) protection (Sackey et al., 2024).

Intellectual Property (IP) is a legal protection given to individuals or companies over their intellectual creations, such as inventions, designs, trade names, literary works, and artworks. Bochańczyk-Kupka (2019) described intellectual property as intangible property. Intellectual property is claimed to have been created by the application of human intelligence and labor. Savale and Savale (2016) also opined that IP covers any unique product of the human mind, including works of literature, art, science, and technology. Governments and international organizations such as the World Intellectual Property Organization (WIPO) and the African Regional Intellectual Property Organization (ARIPO) have measures to protect intellectual property (Motari et al., 2021). The law that protects intellectual property is referred to as Intellectual Property Law. Other terms, such as intellectual property rights and intellectual property protection, are sometimes used to define measures that protect innovation and intellectual property. In this study, intellectual property (IP) protection is used to describe the legal protections granted to an inventor or creator over their creations, typically for a predetermined amount of time (Drahos, 2016). Blakeney (2005) defines intellectual property (IP) protection as the statutory monopoly granted by a state or a government to individuals on their inventions for a predetermined period to prevent their unapproved use.

Like other governments, the government of Ghana issues intellectual property protection that gives only the creator or inventor, their assignees, or franchisees the right to fully utilize the invention or production (Sackey et al., 2024). IP protection in Ghana may be in the form of patents, copyrights, trademarks, and industrial designs (Sackey et al., 2024). Grzegorczyk (2020) asserted that patents develop new inventions or technological innovations with sole property rights to the inventor for a specific limited period, usually 20 years. Copyrights exist for literary and artistic works such as books, music, films, and software, and give authors the right to control their use and distribution (Lutzker, 2013). Trademarks safeguard brand identifiers like names, logos, and slogans that distinguish a company from its competitors and establish customer trust and recognition in the market (Petty, 2012). Industrial designs safeguard the outside or physical look of a product, i.e., color, design, or shape, in a way that will prevent a distinctive look of the product from being replicated without authorization (Efer, 2017). All of these types of protection seek to foster creativity, facilitate the building of businesses, and avoid unauthorized use of inventive and intellectual labor (Sackey et al., 2024).

The general aim of IP protection is to encourage creativity, innovation, and entrepreneurship through offering producers exclusive rights to utilize, capitalize on, or license their work for a period. The Schumpeterian Theory of Innovation assumes that entrepreneurship drives economic transformation and development through the introduction of goods or products that disrupt the existing status quo in the marketplace (Sweezy, 1943). The theory assumes that innovation in product, process, or business model is the major driver of economic expansion, and individual entrepreneurs should be encouraged to find and invest in new ventures (Mehmood et al., 2019). This study assumes that IP protection can encourage innovation and entrepreneurship in Ghana’s start-up economy by protecting the inventions of individuals and entities. Thus, people may be motivated to envision and implement new ideas when they are assured that such ideas may not be copied or imitated by others.  In this case, start-up entrepreneurs within Ghana's start-up economy can innovate on new products, gain investment, and grow their businesses, substantiating Schumpeter's assumption that institutions facilitating and protecting risk-taking innovation generate innovation.

However, there is virtually no existing literature that gives empirical proof of how IP protection fuels innovation and entrepreneurship within Ghana's Emerging Startup Ecosystem. Such literature as Sackey et al. (2024) was based on the use of IP in the Ghanaian Informal Economy and its implications for business growth and competitiveness. The results only reported data on awareness of respondents' IP protection and the degree to which informal enterprises have obtained IP protection for their products, and the challenges in accessing IP protection. Sackey et al. (2024) therefore left a gap in knowledge regarding how IP protection promotes innovation and entrepreneurship. Agyapong et al. (2024) also made an exploratory deductive analysis of Ghana's legislation's intellectual property (IP) component and its effect on Ghanaian small businesses. From the study, it is evident that the IP legislations in place fully cover inventions and not innovations. Sey et al. (2010) examined the usage of intellectual property protection across micro, small, and medium-scale enterprises (MSMEs) within developing economies such as Ghana. The results showed that MSMEs do not employ formal intellectual property protection as a strategy to compete. Rather, they employ informal mechanisms such as trade secrets to combat the copying threat without undermining product quality and continuous innovation. The assessment of the existing literature detects a knowledge gap in the role IP protection plays in innovation and entrepreneurship in Ghana's start-up economy. This research seeks to bridge this gap by offering evidence on how IP protection fuels innovation and entrepreneurship in Ghana's early-stage startup ecosystem.

2. Research Methodology

2.1. Research Design

This research followed a qualitative exploratory research design in examining how intellectual property (IP) can be leveraged to promote innovation and entrepreneurship in the emergent startup ecosystem of Ghana. The qualitative design was deemed most appropriate as it enables a detailed examination of major actors' subjective attitudes, experiences, and motivations in the startup and IP landscape (Edwards, 2020). The exploratory design also allowed the researchers to study and discover a novel understanding of how IP rights are perceived, accessed, used, and enforced by startups (Brink, 1998). This exploratory design was useful in this case since there are relatively fewer available studies on the role of IP in fostering innovation and entrepreneurship in Ghana’s Growing Startup Ecosystem (Olawale et al., 2023). The design also allowed room to investigate emerging issues and views while collecting data, and therefore, it was perfect for revealing the dynamics involved in the intersection of entrepreneurship and IP protection in Ghana. This design, with its emphasis on lived experience, institutional practices, and socio-legal contexts, helped to illuminate how IP protection enhances innovation and entrepreneurship.

2.2. Research site and participants

The research was carried out in Ghana, focusing mainly on start-up clusters in Accra, Kumasi, and Takoradi where technological incubators and entrepreneurial activity are most concentrated. These are cities that have high concentrations of innovation platforms, accelerators, and IP services where one would get quality feedback on IP protection and startup formation.

The population under focus in this research was people and organizations who were actively engaged in Ghana's innovation and startup ecosystem and had a direct or indirect involvement in intellectual property usage and protection. These comprised startup founders and entrepreneurs of startups from different industries, IP and legal experts, government officials from IP-related organizations, and managers of innovation centers or business accelerators. This population was selected to gain an in-depth understanding of the function of IP protection through diversified knowledge from different stakeholders, beneficiaries, as well as implementers of the IP framework.

2.3. Sampling technique and sample size

Purposive sampling was used in selecting the participants based on experience, expertise, and applicability to the field of study. The method guaranteed the selection of individuals with rich information, from which the researchers would obtain a wide scope of insights regarding the influence of IP on business innovation and growth. The sample included about 20 founders and entrepreneurs of startups from different industries, 3 IP and legal experts, and 3 managers of innovation centers or business accelerators. The principle of data saturation guided the sample, in that interviews were conducted until no additional information or themes were gleaned from the interviews. Participants were recruited through startup networks, innovation hubs, referrals, and professional networks, with attention to diversity of sector, location, and nature of engagement with IP systems.

2.4. Data collection and analysis

The main methods of data collection were semi-structured interviews. Semi-structured interviews were employed because they enhance open-ended questions and provide the participants enough autonomy to express or narrate their experiences and views.  The interviews were conducted face-to-face where possible, and virtually for respondents working in other regions or with time limitations. Each interview lasted 30 to 60 minutes and was audio-recorded with participants' permission for later accurate transcription.

Data obtained in interviews were transcribed and thematically analyzed. This allowed the researchers to identify, arrange, and interpret patterns and themes of qualitative data.  The analysis followed the six stages as recommended by Braun and Clark (2006). The researchers began the analysis by familiarizing themselves with the transcribed data by reading transcripts repeatedly. The researchers then created early codes from repeated words and phrases, which was followed by exploring dominant themes in codes, verifying and ensuring themes to be valid and plausible through their re-reading, labeling and defining final themes, and writing the analytic report. The findings are presented in themes and supported by direct quotes from the participants.

2.5. Ethical consideration

Ethical approval for the research was obtained by using an appropriate Institutional Review Board (IRB), and research was conducted according to ethical standards of academic research. Participants in the study were adequately informed regarding the purpose, aim, and research design of the study, and voluntary participation was sought by using informed consent forms. Anonymity was preserved to the maximum possible extent by anonymizing identifiers of a personal nature and keeping all tape recordings and transcripts safely stored. Participants were informed of their right to withdraw at any time during the interviewing process without penalty. Transparency and trustworthiness were ensured by being careful to create a safe and respectful interviewing space, as legal protection and regulation experience is perhaps sensitive. Information gathered was only for research purposes and will not be disclosed to outside parties unless there is explicit participant consent.

2.6. Limitations of the study

Notwithstanding the strength of the research structure to generate strong and reliable results, there were anticipated limitations. Some of the founders and entrepreneurs were resistant to disclosing their IP plans as they were concerned about confidentiality as well as competitive positioning. To reduce such limitations, the researcher gained informed consent and confidentiality to facilitate open expression, utilized multiple data sources of verification of findings, and offered follow-up procedures to reach hard-to-reach participants where necessary. Despite these limitations, the study yields significant contributions towards understanding convergence between IP protection and entrepreneurship in Ghana.

3. Findings

The study explores how IP protection fosters innovation and entrepreneurship. The themes that emerged from the analysis include innovation and creative risk‑taking, investor confidence, brand identity and recognition, and partnerships and expansion. The sample of codes that formed the themes is shown in Table 1.

Table 1: Sample of codes forming the themes that emerged from the analysis

Source: Field Data (2025)

Furthermore, Figure 1 presents the number of participants whose narratives reflect each of the four themes that emerged from the analysis.

Figure 1: Number of Participants Discussing Each Key Theme

Source: Field data (2025)

Figure 1 shows that 17 participants discussed that IP enables innovation and creative thinking, 18 expressed that IP protection enhances investor confidence, and 16 participants narrated IP protection as improved brand identity and recognition. Finally, 15 participants indicated that IP protection improves partnership and expansion.

3.1. Encourages innovation and creative risk-taking

The analysis of the data showed that acquiring or having knowledge of the protection of intellectual property (IP) enhanced innovation and creative risk-taking. Most of the entrepreneurs in Ghana's nascent startup ecosystem indicated they undertook their businesses with caution and fear. They indicated that they kept their ideas secret, their imaginations were suppressed, and they feared imitation. However, obtaining IP rights like patents, copyrights, or trademarks was not just a legal matter but an improvement on their psychological well-being. The participant narrated that they felt empowered to take creative risks, spend more on product development, and introduce new content to the market once they had secured protection of their innovation. IP was seen as preventing infringement, but as an inspiration that vindicated their concepts and vindicated their strategic path. Some of the participants had this to say;

“Before registering anything, I used to say to my colleagues, 'Don't say too much at pitching events; someone might nick the idea.' That was a way of thinking that was holding us back. But when we finally nailed down a lock on our app interface design rights, it felt like we had been given the key. Suddenly, we could reveal more features, try out different layouts, and even get users into early trials without apprehension. The IP provided us with a feeling of security that brought back our creativity”[Participant 1, Tech Founder].

Participant 2 – Fashion Entrepreneur also had this to say; 

"In the fashion industry, copying is so rampant here that I used to go out of my way not to post my best pieces on the internet. But when I protected some of my original textile designs, I could finally breathe. I began taking more artistic risks with my creations, and even competed in two contests that I would have skipped otherwise. IP protection didn't only deter theft—it restored my faith as an artist." [P2, Fashion Entrepreneur].

Another participant asserted;

Initially, I was simply mimicking what the others were doing—nothing original, just safe material. However, after I had my first e-learning module copyrighted with the Copyright Office, it was different. I began to dream more. I began melding local languages, animations, and true-to-life storytelling in ways that I hadn't been brave enough to do before. It's as if after I knew the law was protecting me, I allowed myself to be creative." [Participant 5, EduTech founder].

Participant 4 – Product Developer,

"What transformed everything for us was receiving that utility model certificate. Before this, we were so nervous that we refused to even display our prototype at exhibitions. But after it was patented, we began tweaking the design without restraint. We worked with engineers, experimented with a variety of materials, and didn't fear failure. That certificate made us feel confident in the worth of our idea, and that confidence pushed actual innovation." [P4, Product developer].

3.3. Enhanced investor confidence

The participants further narrated that IP rights not only served as protection strategies for ideas but also represented an important indicator of credibility to most startup business owners in Ghana. It was revealed that investors become more interested in startups or entrepreneurs who have patented their inventions.  According to the participants, IP documents like patents, trademarks, or copyright certificates were viewed as evidence that the startup had created the legal and strategic foundations needed, and thus were ready and had mitigated risk. The interviewees’ narratives revealed that investors made public requests for IP documentation during investment negotiations and even had funds held back pending rights to be secured. In essence, obtaining IP enhances the credibility of inventors, which increases the confidence and trust of investors to invest in emerging inventions.

"I went into the room with my demo and projections prepared, but the investor put me aside and asked quite bluntly, 'Do you own the code?' Meaning, he wasn’t asking if I wrote the code, he was asking if I own it or if I have protected it. I then showed him our registration of copyright, and his entire demeanor changed. He asserted that owning IP put the company in more tangible terms for him. That assisted us in obtaining the first round of funding.” I don’t think our negotiation could go through without the IP protection certificate I showed him. [P6, Fintech Startup Founder].

Participant 2, who is an Innovation Hub Coordinator, had this to say;

"I've been in meetings where startups missed opportunities simply because they couldn't demonstrate ownership of what they'd created. Investors want certainty. I've had one angel investor say to me, 'If there's no IP, then there's nothing to invest in—it's vapor.' Now at the hub, we encourage teams to have at least some IP protection in place before coming in search of funding. It doesn't guarantee investment, but it certainly gets them taken more seriously." [P23, Innovative Hub Coordinator].

Another interviewee had this to say;

"When we were having our negotiations, we found that our product name had become quite valuable, and the first question the VC Company asked was if the name was trademarked. They had their lawyer jump on the call. Luckily, we had done it a few months prior. They later informed us it was something that went into determining how much the company was worth and assured us we weren't going to end up in some type of legal bind down the line. [Participant 15, Agritech Entrepreneur].

These results serve to illustrate the way in which IP rights go beyond legal formality—that they are indicators of trust, lessening investor risk, and assuring that the most valuable assets of a startup are safe and protected.

3.4. Strengthens Brand Identity and Market Recognition

Respondents, being startup founders, explained how protection of intellectual property, i.e., trademark and copyright protection, affected customers', partners', and even competitors' image, perception of their brands.  The respondents explained how a logo, slogan, or packaging registration gave advertising legitimacy, consistency, and professionalism in the marketplace. Obtaining a trademark or copyright regularly improved the public profile of their business. Startups indicated that after their brand identity was protected, they felt more comfortable investing in marketing, expanding operations, and defining a unique customer experience. As one founder described:

"Before having the trademark, we were anticipating ourselves all the time. Whenever we posted something online or printed a flyer, there was always that concern that somebody would just take our name and run with it. But once the registration came through, it was like a switch—it allowed us to confidently do real branding, packaging, and even register for a business expo. Customers were asking us where we were trained. Overnight, the perception changed." [P14, Fintech founder].

Respondents also explained how protected branding enabled them to differentiate themselves in saturated or unregulated markets. Where lookalike products and brand copying were the norm, legal ownership provided startups with an advantage. An owner-manager in the cosmetics industry explained:

“Three other shops were using similar names to mine in town, and customers were constantly confused. I used to spend more time clarifying than selling. But once I trademarked the name and logo, I could finally take legal steps, and the difference was massive. Even the way people approached our shop changed. One lady told me, ‘Now I know which one is the real one.’ That’s the power of IP—it puts respect on your brand.” [P1, Cosmetic shop owner].

Beyond reputation, many startups also highlighted how IP protection allowed them to pitch their businesses to new markets without fear. It made them feel “official” and stable, worthy of bigger conversations and partnerships. As another participant noted:

“When we presented at a trade show in South Africa, we got so much attention, but one distributor pulled me aside and asked, ‘Is your brand protected back home?’ I showed her our certificate, and she smiled and said, ‘Then we can talk.’ Without that trademark, I think she would’ve just moved on. The brand looked neat, yes, but the paperwork made it so. [P15, Agri-Tech Founder[.

Essentially, the members saw IP not as a luxury but as a building block of brand creation. Not only did it grant their businesses protection, but it also provided them with finishing touches that allowed them to compete believably and confidently in their domestic markets as well as globally.

3.5. Facilitates Strategic Partnerships and Business Expansion

Another significant theme derived from the interview with the participants was the facilitative role that IP plays in establishing strategic alliances and business operations in geographies outside local domains. Interviewees described how legal ownership of their inventions as copyright, trademark, or design registration provided them with bargaining power and credibility when entering cross-border alliances, franchising, or licensing agreements.  The interviews asserted that in many of their cases, such negotiations would have been impossible without IP rights.  According to them, the protection ensured that any potential partners were assured that the product, content, or brand in question was indeed original and safe. One of the founders who had conceived a series of entrepreneurship training books recounted:

Initially, we had only our voice in Ghana—we were linked to some vocational schools and NGOs. But it shifted after copyrighting the content. We received a call from a Kenyan firm on LinkedIn, and they asked to know whether they could use the material for a youth empowerment program. Their only requirement was that they be shown proof of ownership. After presenting them with the certificate of copyright, they did not even negotiate much. That acquisition was our first serious step into East Africa, and it only became feasible because we had our IP.” [P17, Entrepreneur and Author].

The participants also explained how the protection of IP eliminated risk in negotiations, particularly when setting out to cross borders. An agribusiness start-up entrepreneur explained how a locally manufactured processing equipment was franchised to a Togolese partner upon obtaining the right to the design. This is what the participant said;

"We knew our machinery was good, and we had a Togo distributor ready to go, but they were waiting until we registered the design. He told me, 'Now I know I'm not purchasing something which someone else might own tomorrow.' That taught me IP isn't all about litigation—it's about establishing credibility as a business person. From there, we signed a franchising deal that's outfitting more than 30 processors in Togo." [P8, Agribusiness start-up entrepreneur].

Others repeated that IP can yield surprising opportunities, especially in industries such as technology, fashion, and education, where content and design are the center of attention. One technology entrepreneur narrated;

"Previously, I used to think that our software was not big enough for us to have partners. But when we registered it, immediately we began getting calls from schools and hubs asking us to package it with what they had. One international NGO even informed us, 'We like to work with IP-covered products because it makes compliance easier.' I was shocked to hear it, but it made me understand how IP works in the background to facilitate partnerships." [P1, Edu-Tech founder].

These narratives reveal that IP protection protects innovators against theft and also enhances partnership and development. In Ghana's burgeoning innovation economy, open IP ownership maintains credibility, fosters trust with future partners, and provides startups with assurance to drive local and international expansion strategies.

3.6. Facilitates Strategic Partnerships and Business Expansion

Another significant theme derived from the interview with the participants was the facilitative role that IP plays in establishing strategic alliances and business operations in geographies outside local domains. Interviewees described how legal ownership of their inventions as copyright, trademark, or design registration provided them with bargaining power and credibility when entering cross-border alliances, franchising, or licensing agreements.  The interviews asserted that in many of their cases, such negotiations would have been impossible without IP rights.  According to them, the protection ensured that any potential partners were assured that the product, content, or brand in question was indeed original and safe. One of the founders who had conceived a series of entrepreneurship training books recounted:

Initially, we operated only in Ghana. But it shifted after copyrighting the content. We received a call from a Kenyan firm on LinkedIn, and they asked to know whether they could use the material for a youth empowerment program. Their only requirement was that they be shown proof of ownership. After presenting them with the certificate of copyright, they did not even negotiate much. That acquisition was our first serious step into East Africa, and it only became feasible because we had our IP.” [P9, Author & Entrepreneur].

The participants also explained how the protection of IP eliminated risk in negotiations, particularly when setting out to cross borders. An agribusiness start-up entrepreneur explained how a locally manufactured processing equipment was franchised to a Togolese partner upon obtaining the right to the design. This is what the participant said;

"We knew our machinery was good, and we had a Togo distributor ready to go, but they were waiting until we registered the design. He told me, 'Now I know I'm not purchasing something which someone else might own tomorrow.' That taught me IP isn't all about litigation—it's about establishing credibility as a business person. From there, we signed a franchising deal that's outfitting more than 30 processors in Togo." [P13, Manufacturer].

Others repeated that IP can yield surprising opportunities, especially in industries such as technology, fashion, and education, where content and design are the center of attention. One technology entrepreneur narrated;

"… But when we registered it, immediately we began getting calls from schools and hubs asking us to package it with what they had. One international NGO even informed us, 'We like to work with IP-covered products because it makes compliance easier.' I was shocked to hear it, but it made me understand how IP works in the background to facilitate partnerships." [P3, Fin-Tec].

These narratives reveal that IP protection protects innovators against theft and also enhances partnership and development. In Ghana's burgeoning innovation economy, open IP ownership maintains credibility, fosters trust with future partners, and provides startups with assurance to drive local and international expansion strategies.

4. Discussion

The findings of this research confirm the Schumpeterian hypothesis that economic development is driven by innovation and institutional protection—i.e., protection of IP—is crucial in enabling entrepreneurial enterprises (Sweezy, 1943). IP protection in Ghana's start-up environment does not just exist in terms of law but as an innovation-catalytic phenomenon in which entrepreneurs are enabled to think innovatively and be bold without worrying about imitation. The outcome of the study shows that IP protection ensures investor trust, as safeguarded ideas become viable and low-risk undertakings. It also solidifies brand reputation and market, allowing start-ups to diversify and establish loyal customer bases. Additionally, IP-backed innovations forge strategic partnerships and business growth, allowing Schumpeter's "creative destruction," whereby new and nascent firms disrupt existing markets and drive economic change. IP is a critical key to unleashing the entrepreneurial forces needed to drive innovation, investment, and long-term development in Ghana's infant economy.

The findings also demonstrate the existing literature's emphasis on the pivotal role of Intellectual Property (IP) protection in stimulating entrepreneurship and innovation, particularly in developing economies. As identified in the above paragraph, IP as an engine of innovation and entrepreneurship supports Schumpeter's (1934) early classic position that entrepreneurs are economic impulses mainly through innovation. Schumpeter contended that innovation entails some form of dislocation and uncertainty and, therefore, requires institutional support to ensure risks are mitigated. In support of the argument, as presented by Schumpeter, the argument, Gans and Stern (2003) argue that patent protection assures entrepreneurs to invest in new concepts because it minimizes imitation risk and allows inventors to benefit from their creativity and innovative intellect. This is consistent with evidence from study participants, in which the vast majority indicated that they had not been prepared to invest in product development unless they had formal IP protection. What their experience indicates is that IP is not a technical legal nicety but a psychological enabler of risk-taking and proactive business behavior. Again, the study revealed that secure IP rights boost investor confidence. Investors are willing to put their resources in support of ideas and products that have obtained IP protection. In other words, IP protection helps innovators to acquire or attract investors.  Empirical evidence in entrepreneurial finance, such as Hsu and Ziedonis (2013), offers proof that IP serves as a legitimation signal and competitive discriminator of startups in markets characterized by early-stage risk aversion by financial institutions. In this study, some Ghanaian entrepreneurs exemplified how investors requested IPOs, such as patent numbers or trademark certificates, before proceeding with issues of investment. This corroborates the Baum and Silverman (2004) contention that IP and other intangible assets perform a responsible signaling function to address information asymmetry and build investor confidence. This is particularly so in the Ghanaian situation, where finance is underdeveloped and venture capital does not exist, where IP registration can be a deal-breaker for start-ups seeking exogenous finance. Moreover, the function of IP protection in building brand equity and market presence is also supported by brand strategy research that positions trademarks and design rights as major tools in building customer loyalty and market awareness. Świtał et al. (2018) admit that where there is a congested or competitive market, IP not only improves brand awareness but also helps in brand equity through improving consumer confidence. Businessmen involved in this research reported that after formalizing their trademarks, customer perception also changed. Customers perceive enterprises with IP protection as credible, which enhances patronage and increases visibility of professionalism. This is also consistent with an overall trend identified by researchers such as Hipp and Bouncken (2009), who link improved business legitimacy and increased customer interaction with the formalization of IP. The final theme—IP as an inducement for strategic partnerships and expansion—collaborates with innovation commercialization literature, which emphasizes IP as a licensing and partnering enabler. Firms with managed IP portfolios are more attractive as joint ventures, licenses, and franchise agreements (Arora and Ceccagnoli, 2006). All this, the response to the study, explained how copyright and trademark ownership swung open doors of possibility to regional progress, collaboration with universities, banks, and foreign corporations. This would mean IP is more about scalability than protection, as well as negotiating power in an open market.

These results point towards Intellectual Property (IP) protection as a key and multi-dimensional tool for developing the startup economy of Ghana. They first point towards IP as an inducer of innovation because it decreases the economic and psychological burden of inventing new goods or services. Entrepreneurs are more likely to undertake innovative risks if they can ensure that their ideas are legally protected, serving greater national interests in terms of technological growth and the creation of jobs. Secondly, the report indicates that IP increases investor confidence, i.e., a company is serious, credible, and willing to expand—a critical factor in seeking both domestic and foreign capital in a setting of capital scarcity. Additionally, the findings highlight that IP constructs brand image and trust among consumers, allowing startups to create honest, professional images within competitive economies. This is particularly crucial in Ghana, where small businesses find it challenging to differentiate and become loyal. In conclusion, the research points out that IP paves the way for expansion as it provides room for startups to grow into licensing, franchising, and cross-border alliances. IP is not necessarily a legal tool, but it is a strategic tool that drives innovation, market competition, economic growth, and international collaboration. The research necessitates greater IP awareness, an institutional setting, and reforms that render IP protection easier and more efficient for Ghanaian entrepreneurs.

5. Conclusion

The current research observed that IP protection is essential for innovation and entrepreneurship in the new startup economy in Ghana. The interview with participants who were founders of startup businesses and coordinators of innovative hubs revealed that IP protection encourages innovative risk-taking, investor trust, brand reputation, strategic partnerships, and business development. These findings confirm that IP is not just an issue of protection by law—it is a strategic measure to enhance innovation and entrepreneurship. The study contributes to the literature by situating the IP global debate within the context of Ghana and provides an understanding of how IP functions in an emerging economy that is challenged by factors such as awareness, enforcement, and access (Sackety et al., 2024). The findings enrich our knowledge of Sub-Saharan African innovation ecosystems and encourage institutional and policy reform to make IP more accessible and efficient. Based on the findings, the study recommends stronger advocacy of public IP literacy, simplification of registration procedures, imposition of stringent control measures, integration of IP into startup capacity-building programs, and availability of affordable legal services. By consolidating all these programs, they can create a network of enablers where entrepreneurship translates into inclusive economic growth and innovation.

Author Contributions: All authors contributed to this research.

Funding: Not applicable.

Conflict of Interest: The authors declare no conflict of interest.

Informed Consent Statement/Ethics Approval: Not applicable.

Declaration of Generative AI and AI-assisted Technologies: This study has not used any generative AI tools or technologies in the preparation of this manuscript.