Trade secrets protection and employment of public firms: Evidence from the Uniform Trade Secrets Act

Andrew Yizhou Liu

Research Policy, 2025, vol. 54, issue 6

Abstract: I demonstrate that the adoption of the Uniform Trade Secrets Act (UTSA) results in a 5.1% increase in employment among public firms in Compustat. The effects are concentrated in firms with below-median initial employment, higher debt costs, and greater potential for knowledge spillovers. R&D expenditures and the accumulation of intangible assets emerge as key drivers of these employment effects. An analysis of labor demand reveals a 9.4% rise in vacancy postings, particularly for skilled workers, following UTSA adoption. Counties with higher initial exposure to public firms’ labor demand experience declines in unemployment rates, underscoring the UTSA’s non-uniform impact on local labor markets and employment growth.

Keywords: Trade secrets protection; Firm employment growth; UTSA; Vacancy postings (search for similar items in EconPapers)
JEL-codes: E24 J63 K2 L25 O3 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:54:y:2025:i:6:s0048733325000721

DOI: 10.1016/j.respol.2025.105243

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