Abstract

This paper explores the dual functions of patents in contemporary society, focusing on their private and social roles in fostering innovation, shaping markets, and nurturing new businesses. Patents are instrumental in incentivizing individual inventors and companies to invest in research and development activities by granting them exclusive rights to their inventions. This private function encourages innovation and facilitates the emergence of novel technologies. Simultaneously, patents serve a broader societal purpose by promoting knowledge dissemination, enabling market competition, and facilitating the growth of start-ups. This paper delves into the intricate interplay between these private and social functions of patents, emphasizing their pivotal role in shaping the landscape of innovation, markets, and new businesses. Patents serve as a crucial mechanism for incentivizing innovation by granting exclusive rights to inventors, thereby enabling them to recoup their investments and enjoy a competitive advantage. Simultaneously, patents play a pivotal role in shaping markets and fostering the emergence of new businesses. This study delves into the interplay between these private and social functions, highlighting the complex dynamics that influence technological progress and economic growth.