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Trade Secrets: International Trade
Policy and Empirical Research
Andre Barbe and Katherine Linton
U.S. International Trade...
Disclaimer
This presentation represents solely the views of
the authors and not the views of the United
States Internation...
Agenda
• What are trade secrets?
• Why are they important?
• Trade policy
• Empirical research
Barbe - Trade Secrets 3 / 12
Definition of Trade Secret
• Type of intellectual property (IP)
• A trade secret is a piece of information which is not ge...
Trade Secrets from the Owner’s
Perspective
Barbe - Trade Secrets
Advantages
• Can be used on
anything
– Any type of inform...
Survey on Importance of Trade Secrets
Type of IP
Industry Trade secrets Patents Trademarks Copyrights
All 58 48 44 27
Manu...
Trade Secrets in Policy
• New laws on trade secrets in US and EU Council
• Trade secrets included in most recent US trade
...
EMPIRICAL RESEARCH
Barbe - Trade Secrets 8 / 12
Measuring Trade Secret Protection
• Patent protections have been quantified since
1997
– Ginarte and Park index
– Existenc...
Areas for Future Research
• Trade secrets in developing countries
• Relationship between trade secret protections
and inte...
U.S. ITC Research
• Looked at relationship between
– IP protections in foreign countries and
– Their payments for the use ...
Conclusion
• Trade secrets are “very important” to most
U.S. businesses
• Being incorporated into domestic law and
trade a...
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Barbe - Trade secrets international trade policy and empirical research

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Parallel sessions 1 - 20 September 2016

Published in: Data & Analytics
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Barbe - Trade secrets international trade policy and empirical research

  1. 1. Trade Secrets: International Trade Policy and Empirical Research Andre Barbe and Katherine Linton U.S. International Trade Commission OECD Blue Sky Forum September 20, 2016
  2. 2. Disclaimer This presentation represents solely the views of the authors and not the views of the United States International Trade Commission or any of its individual Commissioners. Barbe - Trade Secrets 2 / 12
  3. 3. Agenda • What are trade secrets? • Why are they important? • Trade policy • Empirical research Barbe - Trade Secrets 3 / 12
  4. 4. Definition of Trade Secret • Type of intellectual property (IP) • A trade secret is a piece of information which is not generally known and by which a business may obtain an economic advantage • Examples: – Blueprints and chemical formulae – Lists of prices and customers or marketing strategies – Research on what does not work • Law prohibits “misappropriation” but not reverse engineering Barbe - Trade Secrets 4 / 12
  5. 5. Trade Secrets from the Owner’s Perspective Barbe - Trade Secrets Advantages • Can be used on anything – Any type of information – Small improvements • Inexpensive Disadvantages • Only wrongful conduct prohibited – Can be reverse engineered • Once lost, lost forever 5 / 12
  6. 6. Survey on Importance of Trade Secrets Type of IP Industry Trade secrets Patents Trademarks Copyrights All 58 48 44 27 Manufacturing 62 56 50 26 Chemicals 70 68 54 26 Machinery 53 48 42 22 Computer and electronics 71 64 50 34 Transportation equipment 48 43 39 22 Nonmanufacturing 54 40 37 29 Information 64 44 57 51 Professional, scientific and technical services 50 42 20 20 Source: NSF and NCSES, BRDI 2012 Survey, 2015, Tables 53-57. Barbe - Trade Secrets Percent of firms that rate each type of IP as “very important” 6 / 12
  7. 7. Trade Secrets in Policy • New laws on trade secrets in US and EU Council • Trade secrets included in most recent US trade agreement, the Trans-Pacific Partnership • Trans-Pacific Partnership requires countries to have – Some sort of legal framework for trade secrets – Criminal penalties for obtaining via hacking Barbe - Trade Secrets 7 / 12
  8. 8. EMPIRICAL RESEARCH Barbe - Trade Secrets 8 / 12
  9. 9. Measuring Trade Secret Protection • Patent protections have been quantified since 1997 – Ginarte and Park index – Existence of this index has allowed research on the impact of patent protections • Only recently was a similar index created for trade secrets – Lippoldt and Schultz index (2014) – Found that increasing protection for trade secrets is correlated with increased R&D and international trade Barbe - Trade Secrets 9 / 12
  10. 10. Areas for Future Research • Trade secrets in developing countries • Relationship between trade secret protections and international trade – Payments for the use of IP – Foreign direct investment Barbe - Trade Secrets 10 / 12
  11. 11. U.S. ITC Research • Looked at relationship between – IP protections in foreign countries and – Their payments for the use of American IP • Findings – Patent protection index • Positive and statistically significant effect on payments – Trade secret protection index • Statistically insignificant effect on payments • Can other studies replicate these findings? Barbe - Trade Secrets 11 / 12
  12. 12. Conclusion • Trade secrets are “very important” to most U.S. businesses • Being incorporated into domestic law and trade agreements • But many basic facts about them are unknown Barbe - Trade Secrets 12 / 12

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