| By: |
Crass, Dirk;
Garcia Valero, Francisco;
Pitton, Francesco;
Rammer, Christian |
| Abstract: |
This paper tests a number of hypotheses on the use and effectiveness of
patents and trade secrets designed to protect innovation. While previous
studies have often considered patents and trade secrets as substitutes for one
another, we investigate the complementary role of the two protection methods.
We identify protection strategies for single innovation firms and hence
overcome the assignment problem of existing empirical studies, i.e. whether
firms using both protection methods do so for the same innovation or for
different innovations. Employing firm panel data from Germany, we find fairly
few differences between the determinants for choosing secrecy and patenting.
Single innovators that combine both strategies, 39% of the group, tend to aim
at a higher level of innovation and act in a more uncertain technological
environment. Firms combining both protection methods yield significantly
higher sales with new-to-market innovations. Using only secrecy has slightly
stronger positive impacts on firm profitability. |
| Keywords: |
Patents,Trade Secrets,Performance Impacts,Single Innovation |
| JEL: |
O31 O32 O34 |
| Date: |
2016 |
| URL: |
https://d.repec.org/n?u=RePEc:zbw:zewdip:16061 |