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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.

Suggested Citation

  • Parello, Carmelo Pierpaolo, 2011. "Information gathering, innovation and growth," MPRA Paper 31157, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:31157
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    References listed on IDEAS

    as
    1. Segerstrom, Paul S, 1991. "Innovation, Imitation, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 807-827, August.
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    5. Helpman, Elhanan, 1993. "Innovation, Imitation, and Intellectual Property Rights," Econometrica, Econometric Society, vol. 61(6), pages 1247-1280, November.
    6. Crane, Andrew, 2005. "In the company of spies: When competitive intelligence gathering becomes industrial espionage," Business Horizons, Elsevier, vol. 48(3), pages 233-240.
    7. Carmelo Pierpaolo Parello, 2005. "Proprietary Information Protection and the Long-Run Implications of Industrial Espionage," Rivista di Politica Economica, SIPI Spa, vol. 95(5), pages 91-124, September.
    8. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders and Product Cycles," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 557-586.
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    More about this item

    Keywords

    Quality-improvement; R&D; information leakages; corporate intelligence; growth.;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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