Economic Growth and Information Disclosure through Two IPR Protections: Patent and Trade Secret
This paper analyzes the growth effects of the weakening patent protection in an endogenous growth model. In the model, firms can choose how much he protects the good by patent and trade secret. Due to the imperfectness of these protections, the technological information diffuses through them by different way and it helps other firms to imitate the technology and innovate new one. The article shows three result. First, the growth effect of relaxation patent policy is completely different according to the leakage probability of trade secret. While the policy has positive effects when the spillover is weak, it does negative influence under the strong spillover. Second, the lowering leakage probability necessary leads rapid growth. Finally, the paper suggests Japan and the U.S. economy had better have opposite patent policies.
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Levine's Working Paper Archive
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