EconPapers    
Economics at your fingertips  
 

Economic growth under two forms of intellectual property rights protection: patents and trade secrets

Keishun Suzuki

Journal of Economics, 2015, vol. 115, issue 1, 49-71

Abstract: This paper analyzes the effects on growth of strengthened patent protections, where trade secrets are introduced as an additional protection method. Strengthening patent protection decreases the amount of common knowledge, which has two asymmetric effects on incentives to innovate. First, as competitors cannot freely use technological information, it helps successful innovators earn higher profits. Second, less disclosure of information reduces R&D productivity. The model shows that the relative importance of patents versus trade secrets determines whether the former positive effect dominates the latter negative effect. As a result, strengthened patent protection can increase economic growth when the risk of leakage of trade secrets is high. Conversely, when the risk is low, stronger patent protection hinders growth. Similar opposing results are also found in welfare analysis. Copyright Springer-Verlag Wien 2015

Keywords: Innovation; Patent; Trade secret; Dynamic general equilibrium; O31; O34; L16 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1007/s00712-014-0410-8 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jeczfn:v:115:y:2015:i:1:p:49-71

DOI: 10.1007/s00712-014-0410-8

Access Statistics for this article

Journal of Economics is currently edited by Giacomo Corneo

More articles in Journal of Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-03-28
Handle: RePEc:kap:jeczfn:v:115:y:2015:i:1:p:49-71