Examines how Intellectual Property inhibits innovation in extractive economies, suggesting barriers for entrepreneurs.
This study explores the paradoxical role of Intellectual Property (IP) in economies dominated by Attrition Entrepreneurship (A.E.), where top-down, extractive practices stifle genuine innovation. Through the case of SOLIRANCE, a technologically superior driver behavior analysis technology, we demonstrate how a robust IP portfolio can function as a structural barrier that prevents an innovation from being co-opted by state-linked patronage networks, leading to its institutional marginalization. Our research integrates the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT) with A.E. theory to propose the concept of "Institutional Friction for Non-Extractive Assets." We show how the IP protection of SOLIRANCE, which is typically a source of competitive advantage in open markets, becomes a liability in an extractive economy that rewards political rent-seeking over creative destruction. Our findings highlight the mechanisms by which A.E. ventures crowd out non-extractive technological assets, and how the "delay" in the real world is used as a tool to exhaust the capital of genuine entrepreneurs. This research has significant implications for policymakers seeking to promote sustainable innovation and prevent economic decay. Keywords: Attrition Entrepreneurship (A.E.), Intellectual Property (IP), Institutional Friction, Resource-Based View (RBV), Dynamic Capabilities Theory (DCT), Non-Extractive Assets, Economic Decay, Command-and-Control Economy, Petro-Rentier State, Innovation Stifling
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Basiri et al. (2026) studied this question.
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