Trade Secrets Laws and Technology Spillovers

43 Pages Posted: 27 Oct 2020

See all articles by Yanzhi Wang

Yanzhi Wang

National Taiwan University - Department of Finance

Multiple version iconThere are 3 versions of this paper

Date Written: September 10, 2020

Abstract

This paper examines whether and to what extent the Uniform Trade Secrets Act (UTSA) affects technology spillovers between focal firms (i.e., receivers of spillovers) and peers (i.e., senders of spillovers). I find that technology spillovers from peers located in states adopting the UTSA are 27% to 75% lower than technology spillovers from peers located in states not adopting the UTSA. Focal firms whose peers come from the UTSA states have lower R&D investments and fewer migrant inventors than firms whose peers come from non-UTSA states. I also find that the Defend Trade Secrets Act has weak effect on technology spillovers.

Keywords: Technology spillovers, R&D spillovers, Trade secrets laws, UTSA, DTSA

JEL Classification: G31, O30, O38, K22

Suggested Citation

Wang, Yanzhi, Trade Secrets Laws and Technology Spillovers (September 10, 2020). Available at SSRN: https://ssrn.com/abstract=3690244 or http://dx.doi.org/10.2139/ssrn.3690244

Yanzhi Wang (Contact Author)

National Taiwan University - Department of Finance ( email )

1, Sec. 4, Roosevelt Road
Taipei, 106
Taiwan

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