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Information gathering, innovation and growth

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  • Parello, Carmelo Pierpaolo

Abstract

In this paper we study the economic implications of IPR protection on corporate intelligence, R&D investment and economic growth. To accomplish this objective, we introduce trade secret and information leakage into a standard quality-ladder growth model and study the long-run implications of improving the privacy of firms' data. We find that reducing the set of practices of information gathering is more effective in protecting firms' privacy than strengthening trade secrets.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 31157.

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Date of creation: 02 Mar 2011
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Handle: RePEc:pra:mprapa:31157

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Keywords: Quality-improvement; R&D; information leakages; corporate intelligence; growth.;

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  1. Crane, Andrew, 2005. "In the company of spies: When competitive intelligence gathering becomes industrial espionage," Business Horizons, Elsevier, Elsevier, vol. 48(3), pages 233-240.
  2. Glass, Amy Jocelyn & Saggi, Kamal, 2002. "Intellectual property rights and foreign direct investment," Journal of International Economics, Elsevier, Elsevier, vol. 56(2), pages 387-410, March.
  3. Jones, Charles I, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(2), pages 495-525, May.
  4. Dinopoulos, Elias & Thompson, Peter, 1998. " Schumpeterian Growth without Scale Effects," Journal of Economic Growth, Springer, Springer, vol. 3(4), pages 313-35, December.
  5. Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 527, Massachusetts Institute of Technology (MIT), Department of Economics.
  6. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
  7. Grossman, Gene M & Helpman, Elhanan, 1991. "Quality Ladders and Product Cycles," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 106(2), pages 557-86, May.
  8. Dinopoulos, Elias & Segerstrom, Paul, 1996. "A Schumpeterian Model of Protection and Relative Wages," Working Paper Series, Research Institute of Industrial Economics 471, Research Institute of Industrial Economics.
  9. Cozzi, Guido, 2001. " Inventing or Spying? Implications for Growth," Journal of Economic Growth, Springer, Springer, vol. 6(1), pages 55-77, March.
  10. Lai, Edwin L. -C., 1998. "International intellectual property rights protection and the rate of product innovation," Journal of Development Economics, Elsevier, Elsevier, vol. 55(1), pages 133-153, February.
  11. Rustichini, Aldo & Schmilz, James Jr., 1991. "Research and imitation in long-run growth," Journal of Monetary Economics, Elsevier, Elsevier, vol. 27(2), pages 271-292, April.
  12. Elhanan Helpman, 1992. "Innovation, Imitation, and Intellectual Property Rights," NBER Working Papers 4081, National Bureau of Economic Research, Inc.
  13. Vincenzo Denicolo & Luigi Alberto Franzoni, 2004. "Patents, Secrets, and the First-Inventor Defense," Journal of Economics & Management Strategy, Wiley Blackwell, Wiley Blackwell, vol. 13(3), pages 517-538, 09.
  14. Segerstrom, Paul S, 1991. "Innovation, Imitation, and Economic Growth," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(4), pages 807-27, August.
  15. Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, American Economic Association, vol. 88(5), pages 1290-1310, December.
  16. Cozzi, Guido & Spinesi, Luca, 2006. "Intellectual Appropriability, Product Differentiation, And Growth," Macroeconomic Dynamics, Cambridge University Press, Cambridge University Press, vol. 10(01), pages 39-55, February.
  17. Samuel Kortum, 1994. "A Model of Research, Patenting, and Technological Change," NBER Working Papers 4646, National Bureau of Economic Research, Inc.
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