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Did the Defend Trade Secrets Act Spur the Reliance on Trade Secrets?

Author

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  • Katrin Hussinger

    (DEM, Université du Luxembourg)

Abstract

"This paper explores whether the U.S. Defend Trade Secrets Act (DTSA) increased the declaration of trade secrets. Leveraging cross-sectoral variation in the importance of trade secrets prior to the DTSA, empirical results show that the DTSA was followed by an increase in the intensive margin of trade secrets declaration in service industries, not in manufacturing industries though. The extensive margin of trade secret declaration increased in both services and manufacturing, where the surge was strongest in manufacturing. The extensive margin increased most strongly for manufacturing with a high sectoral R&D intensity. The results are of interest to policy makers as trade secrets can hinder knowledge flows with potential implications for innovation."

Suggested Citation

  • Katrin Hussinger, 2026. "Did the Defend Trade Secrets Act Spur the Reliance on Trade Secrets?," DEM Discussion Paper Series 26-06, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:26-06
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    File URL: https://hdl.handle.net/10993/67981
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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