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Proprietary Information Protection and the Long-Run Implications of Industrial Espionage

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  • Carmelo Pierpaolo Parello

    () (Catholic University of Louvain, Università di Viterbo "La Tuscia")

Abstract

This paper deals with proprietary information and industrial espionage. To obtain this goal, an innovation-based growth model is constructed where R&D employment is split into two types of researchers: inventors and spies. The paper provides an analysis of the steady-state effects of better enforcement of proprietary information protection in terms of a change of the institutional set-up devoted to intellectual property rights and private information protection. We find that there is only a temporary positive impact on the innovation rate, while there is permanent negative effect on the steady-state rate of spying and nominal wage.

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Bibliographic Info

Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 95 (2005)
Issue (Month): 5 (September-October)
Pages: 91-124

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Handle: RePEc:rpo:ripoec:v:95:y:2005:i:5:p:91-124

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