The purpose of this chapter is to investigate whether regional entrepreneurial and innovative outcomes have been affected by this legislative change in intellectual property rights of inventions made by scientists. Germany implemented a farreaching legislative change by reforming the old ‘professor’s privilege’ (Hochschullehrerprivileg) in order to foster entrepreneurial innovation among university faculty and balance the interests between scientists and universities. Our results suggest that this legislative change did have an initial positive effect on universities as measured by start-ups and patents. The effect yet changed over time, leading to some unintended consequences. Our chapter argues that policymakers and legislators need to give consideration to the replication of policy and legislative instruments from other contexts along with the criteria that are used to measure success.