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Information Gathering, Innovation and Growth

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  • Carmelo Pierpaolo Parello

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 present a dynamic, scale-invariant Schumpeterian model of growth with information gathering and analyze the steady-state e¤ects of introducing stronger protection for …rms con…dential information. In doing so, we introduce the trade secret into a standard quality-ladder growth model and study the long-run implications of improving the privacy of …rms’data. We …nd that reducing the set of practices of information gathering is more e¤ective in protecting …rms’privacy than strengthening trade secret.

Suggested Citation

  • Carmelo Pierpaolo Parello, 2009. "Information Gathering, Innovation and Growth," Working Papers 122, University of Rome La Sapienza, Department of Public Economics.
  • Handle: RePEc:sap:wpaper:wp122
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    References listed on IDEAS

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    1. Cozzi, Guido, 2001. "Inventing or Spying? Implications for Growth," Journal of Economic Growth, Springer, vol. 6(1), pages 55-77, March.
    2. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    3. Helpman, Elhanan, 1993. "Innovation, Imitation, and Intellectual Property Rights," Econometrica, Econometric Society, vol. 61(6), pages 1247-1280, November.
    4. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders and Product Cycles," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 557-586.
    5. Lai, Edwin L. -C., 1998. "International intellectual property rights protection and the rate of product innovation," Journal of Development Economics, Elsevier, vol. 55(1), pages 133-153, February.
    6. Paul Segerstrom & Elias Dinopoulos, 1999. "A Schumpeterian Model of Protection and Relative Wages," American Economic Review, American Economic Association, vol. 89(3), pages 450-472, June.
    7. Vincenzo Denicolo & Luigi Alberto Franzoni, 2004. "Patents, Secrets, and the First-Inventor Defense," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(3), pages 517-538, September.
    8. Cozzi, Guido & Spinesi, Luca, 2006. "Intellectual Appropriability, Product Differentiation, And Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 10(01), pages 39-55, February.
    9. Segerstrom, Paul S, 1991. "Innovation, Imitation, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 807-827, August.
    10. Charles I. Jones, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 495-525.
    11. Crane, Andrew, 2005. "In the company of spies: When competitive intelligence gathering becomes industrial espionage," Business Horizons, Elsevier, vol. 48(3), pages 233-240.
    12. Rustichini, Aldo & Schmilz, James Jr., 1991. "Research and imitation in long-run growth," Journal of Monetary Economics, Elsevier, vol. 27(2), pages 271-292, April.
    13. Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, vol. 88(5), pages 1290-1310, December.
    14. Glass, Amy Jocelyn & Saggi, Kamal, 2002. "Intellectual property rights and foreign direct investment," Journal of International Economics, Elsevier, vol. 56(2), pages 387-410, March.
    15. Samuel Kortum, 1994. "A Model of Research, Patenting, and Technological Change," NBER Working Papers 4646, National Bureau of Economic Research, Inc.
    16. Dinopoulos, Elias & Thompson, Peter, 1998. "Schumpeterian Growth without Scale Effects," Journal of Economic Growth, Springer, vol. 3(4), pages 313-335, December.
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    More about this item

    Keywords

    R&D investment; trade secret; information gathering; economic growth.;

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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