Information Gathering, Innovation and Growth
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 eÂ¤ects of introducing stronger protection for Â…rms conÂ…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 Â…rmsÂ’data. We Â…nd that reducing the set of practices of information gathering is more eÂ¤ective in protecting Â…rmsÂ’privacy than strengthening trade secret.
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