Innovation in the Service Sector and the Role of Patents and Trade Secrets

Masayuki Morikawa

AJRC Working Papers from Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University

Abstract: This paper, using Japanese firm-level data, presents findings about innovative activities in the service sector and the role of patents and trade secrets on innovation. According to the analysis, first, service firms have fewer product innovations than do manufacturing firms, but the productivity of innovative service firms is very high. Second, service firms have a low propensity for holding patents, but their holding of trade secrets is comparable to that of the manufacturing firms. Third, patents and trade secrets have positive relationships with product innovations, and the effects are quantitatively similar in magnitude in both the manufacturing and the service sectors. On the other hand, a positive relationship between trade secrets and process innovations is found only in the manufacturing sector. These results suggest a pivotal role of the law protecting trade secrets on innovation and productivity growth in the service sector.

JEL-codes: L80 O31 O34 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2014
New Economics Papers: this item is included in nep-cse, nep-ino, nep-ipr, nep-pr~ and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Innovation in the Service Sector and the Role of Patents and Trade Secrets (2014)
Working Paper: Innovation in the Service Sector and the Role of Patents and Trade Secrets (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:csg:ajrcwp:1403

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