Date Added: May 2011
In this paper the authors study the economic implications of IPR protection on corporate intelligence, R&D investment and economic growth. To accomplish this objective, they introduce trade secret and information leakage into a standard quality-ladder growth model and study the long-run implications of improving the privacy of firms' data. They find that reducing the set of practices of information gathering is more effective in protecting firms' privacy than strengthening trade secrets. The importance of R&D in technology-intensive sectors has been widely highlighted by the Schumpeterian theory (e.g. Grossman and Helpman (1991), and Aghion and Howitt (1992, 1998)).