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Economic Growth and Information Disclosure through Two IPR Protections: Patent and Trade Secret

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  • Keishun Suzuki

Abstract

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.

Suggested Citation

  • Keishun Suzuki, 2012. "Economic Growth and Information Disclosure through Two IPR Protections: Patent and Trade Secret," TERG Discussion Papers 282, Graduate School of Economics and Management, Tohoku University.
  • Handle: RePEc:toh:tergaa:282
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    File URL: http://hdl.handle.net/10097/55411
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    References listed on IDEAS

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    1. Ryo Horii & Tatsuro Iwaisako, 2007. "Economic Growth with Imperfect Protection of Intellectual Property Rights," Journal of Economics, Springer, vol. 90(1), pages 45-85, January.
    2. Chen, Yongmin & Puttitanun, Thitima, 2005. "Intellectual property rights and innovation in developing countries," Journal of Development Economics, Elsevier, vol. 78(2), pages 474-493, December.
    3. Paul Klemperer, 1990. "How Broad Should the Scope of Patent Protection Be?," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 113-130, Spring.
    4. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    5. Futagami, Koichi & Iwaisako, Tatsuro, 2007. "Dynamic analysis of patent policy in an endogenous growth model," Journal of Economic Theory, Elsevier, vol. 132(1), pages 306-334, January.
    6. Rod Falvey & Neil Foster & David Greenaway, 2006. "Intellectual Property Rights and Economic Growth," Review of Development Economics, Wiley Blackwell, vol. 10(4), pages 700-719, November.
    7. Park, Walter G., 2008. "International patent protection: 1960-2005," Research Policy, Elsevier, vol. 37(4), pages 761-766, May.
    8. Judd, Kenneth L, 1985. "On the Performance of Patents," Econometrica, Econometric Society, vol. 53(3), pages 567-585, May.
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