The traditional approach of the Iranian Intellectual Property (IP) law system, which denies protection to ideas, is inadequate and requires an overhaul, given the vital role of the Idea Under Development in the knowledge-based economy and entrepreneurship. This approach disregards contemporary commercial and economic needs, rendering the idea under development vulnerable to misappropriation and abuse. Therefore, this research, utilizing an analytical-critical methodology and library-based data collection, evaluates the legal and economic foundations. It seeks to answer whether economic and legal principles can justify and substantiate the protection of the idea under development as an Intellectual Asset. Accordingly, the primary hypothesis is based on the premise that, due to its innovative nature, commercial potential, and the investment expended, the idea under development constitutes a distinct, intermediate intellectual asset. It necessitates a novel protective framework, differentiated from traditional forms, to maintain the incentive for innovation and facilitate commercialization. The research findings, while confirming this hypothesis, demonstrate that the traditional bases for denying protection—namely, Conflict with Public Interest and conflict with the country's economic preferences concerning foreign innovations—are not only inapplicable to the idea under development but can actually be invoked to support its protection. In other words, the idea is substantively fully compatible with the characteristics of an intellectual asset, and its protection is essential for preserving the incentive for complex innovations and facilitating commercialization. Finally, to overcome practical challenges and guarantee the rights of the creator, practical recommendations are proposed.