This study aims to explore the dual and complex role of intellectual property (IP) related to inventions, with an emphasis on the patent system, in facilitating or constraining the entrepreneurial process in the health sector. Given the existing contradictions in the supportive yet monopolistic nature of the patent system and the challenges highlighted in the literature, this research analyzes the positive, negative, and ambivalent effects of IP on entrepreneurship based on the experiences of key stakeholders at the Incubator Center and the Health Science and Technology Park of Kermanshah University of Medical Sciences. Employing a qualitative approach through inductive content analysis, data were gathered via 18 semi-structured interviews with managers of knowledge-based and technology firms and staff from the mentioned centers. The data were analyzed through open and axial coding. The findings indicate that IP influences health entrepreneurship in three categories: positive (legal protections, startup development, access to finance, technological innovation, collaborative partnerships, and entrepreneurial culture), negative (policy and implementation gaps, competitive risks, disclosure and commercialization challenges), and ambivalent (competitive advantage, monopolistic tendencies, and cross-national legal differences). The results underscore the necessity for balanced policymaking, institutional and infrastructural capacity-building, knowledge enhancement, and the development of targeted support mechanisms to optimize the enabling role of IP while mitigating its restrictive effects on entrepreneurship in the health sector.