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Proprietary Information Protection and the Long-Run Implications of Industrial Espionage

Author

Listed:
  • Carmelo Pierpaolo Parello

    (Catholic University of Louvain
    Università di Viterbo "La Tuscia")

Abstract

This paper deals with proprietary information and industrial espionage. To obtain this goal, an innovation-based growth model is constructed where R&D employment is split into two types of researchers: inventors and spies. The paper provides an analysis of the steady-state effects of better enforcement of proprietary information protection in terms of a change of the institutional set-up devoted to intellectual property rights and private information protection. We find that there is only a temporary positive impact on the innovation rate, while there is permanent negative effect on the steady-state rate of spying and nominal wage.

Suggested Citation

  • Carmelo Pierpaolo Parello, 2005. "Proprietary Information Protection and the Long-Run Implications of Industrial Espionage," Rivista di Politica Economica, SIPI Spa, vol. 95(5), pages 91-124, September.
    • Handle: RePEc:rpo:ripoec:v:95:y:2005:i:5:p:91-124
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    Cited by:

    1. Carmelo Pierpaolo Parello, 2009. "Information Gathering, Innovation and Growth," Working Papers in Public Economics 122, University of Rome La Sapienza, Department of Economics and Law.

    More about this item

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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