Browse > Article

Empirical Analysis of Mutual Complement between Patents and Trade Secrets  

Choi, Seok-joon (서울시립대학교)
Kim, Sang-sin (한국개발연구원)
Publication Information
Journal of Korea Technology Innovation Society / v.19, no.3, 2016 , pp. 634-657 More about this Journal
Abstract
This study analyzes relationship between utilizing patents and trade secrets of firms empirically by using Koran Innovation Survey data. A number of prior theoretical studies have been discussed by assuming the patents and trade secrets used as alternative mutual relations. However, the use of patents and trade secrets can be used as a complementary and alternative methods generally based on a variety of firm and innovation characteristics. In this study, after controlling for nature of businesses, industry and innovation, the relationships between patent and trade secrets were analyzed by using 2005, 2008, 2010, 2012 and 2014 cross-sectional data. Prior to 2010, the relationship of patents and trade secrets was used as a complementary, while the result of 2014 showed that patents and trade secrets were utilized by firms independently. However, because we couldn't completely rule out the possibility that this result is caused by the difference between surveys, we performed a additional analysis. In conclusion, the independent relationship between patents and trade secrets may be caused by the increased number of patent applications and preference for the patent by firms since 2010.
Keywords
Patent; Trade Secret; Korean Innovation Survey; Complementarity;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Teece, D. J. (1986), "Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing and Public Policy", Research Policy, 15(6): 285-305.   DOI
2 Zaby, A. K. (2010), "Losing the Lead: The Patenting Decision in the Light of the Disclosure Requirement", Economics of Innovation and New Technology, 19(2): 147-164.   DOI
3 유경진.홍순기 (2011), "한국 제조기업의 기술혁신보호방법 결정요인과 상호보완성", 경영과학, 28(3): 31-45.
4 이재형 (2007), 우리 산업의 경쟁구조와 산업집중 분석: 광공업 및 서비스산업을 대상으로, 서울: 한국개발연구원
5 이재형.양정삼.이상무 (2013), 시장구조조사, 서울: 한국개발연구원
6 이창주 (2013), "특허권 강화에 따른 새로운 기술이전 유형의 구분 제안", 지식재산연구, 8(4): 191-214.
7 주시형 (2012), "기술혁신 보호전략에 대한 연구", 한국혁신학회지, 7(1): 3-28.
8 Amara, N., Landry, R. and Traore, N. (2008), "Managing the Protection of Innovations in Knowledge-intensive Business Services", Research Policy, 37(9): 1530-1547.   DOI
9 Anton, J. J. and Yao, D. A. (2004), "Little Patents and Big Secrets: Managing Intellectual Property", RAND Journal of Economics, 35: 1-22.   DOI
10 Antonelli, C. (2008), "The Tradeoff of Intellectural Property Rights Reconsidered", Economica, 10(2): 15-27.
11 Arbussa, A. and Coenders, G. (2007), "Innovation Activities, Use of Appropriation Instruments and Absorptive Capacity: Evidence from Spanish Firms", Research Policy, 36(10): 1545-1558.   DOI
12 Arrow, K. J. (1962), "Economic Welfare and the Allocation of Resources for Invention", In Nelson, R. R. (ed.) The Rate and Direction of Inventive Activity, Princeton University Press, 609-626.
13 Arundel, A. (2001), "The Relative Effectiveness of Patents and Secrecy for Appropriation", Research Policy, 30(4): 611-624.   DOI
14 Arundel, A. and Kabla, I. (1998), "What Percentage of Innovations are Patented? Empirical Estimates for European Firms", Research Policy, 27(2): 127-144.   DOI
15 Barros, H. M. (2008), "The Interaction between Patents and Other Appropriability Mechanisms: Firm-level Evidence from UK Manufacturing", Insper Working Paper, WPE-112.
16 Blind, K., Edler, J., Frietsch, R. and Schmoch, U. (2006), "Motives to Patent: Empirical Evidence from Germany", Research Policy, 35(5): 655-672.   DOI
17 Brouwer, E. and Kleinknecht, A. (1999), "Innovative Output, and a Firm's Propensity to Patent.: An Exploration of CIS Micro Data", Research Policy, 28(6): 615-624.   DOI
18 Cohen, W. M., Nelson, R. R. and Walsh, J. P. (2000), "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)", NBER Working Paper, No.7552.
19 Denicolo, V. and Franzoni, L. A. (2006), "Innovation, Duplication, and the Contract Theory of Patents", Available at SSRN: http://ssrn.com/abstract=916094
20 Denicolo, V. and Franzoni, L. A. (2004), "Patents, Secrets, and the First-Inventor Defense", Journal of Economics & Management Strategy, 13(3): 517-538.   DOI
21 Erkal, N. (2004), "On The Interaction Between Patent and Trade Secret Policy", Australian Economic Review, 37(4): 427-435.   DOI
22 Gallie, E. P. and Legros, D. (2009), "The Use of Intellectual Property Rights by French", Available at https://basepub.dauphine.fr/bitstream/handle/123456789/5000/2009-04.PDF?sequence=1
23 Geroski, P. A. (1995), "What Do We Know about Entry?", International Journal of Industrial Organization, 13(4): 421-440.   DOI
24 Green, W. H. (2003), "Econometric Analysis(FIFTH EDITION)", Prentice Hall
25 Greenhalgh, C. and Rogers, M. (2010), "Innovation, Intellectual Property, and Economic Growth", Princeton University Press
26 Hounshell, D. A. and Smith, J. K. (1988), "Science and Corporate Strategy: Du Pont R&D, 1902-1980", Cambridge University Press, Cambridge
27 Hall, B. H., Helmers, C., Rogers, M. and Sena, V. (2012), "The Choice between Formal and Informal Intellectual Property: A Literature Review", NBER Working Paper No. 17983.
28 Hall, B. H., Helmers, C., Rogers, M. and Sena, V. (2013), "The Importance (or not) of Patents to UK Firms", NBER Working Paper, No.19089.
29 Hanel, P. (2008), "The Use of Intellectual Property Rights and Innovation by Manufacturing Firms in Canada", Economics of Innovation and New Technology, 17(4): 285-309.   DOI
30 Hughes, A. and Mina, A. (2010), "The Impact of the Patent System on SMEs", ESRC Center f or Business Research Working Paper, No.411.
31 Kammoun, O. and Rahmouni, M. (2014), "Appropriation Instruments and Innovation Activities: Evidence from Tunisian Firms", Innovation Management, 11(6): 1-27.
32 Hurmelinna-Laukkanen, P. and Puumalainen, K. (2007), "Nature and Dynamics of Appropriability: Strategies for Appropriating Returns on Innovation", R&D Management, 37(2) : 95-112.   DOI
33 Hussinger, K. (2005), "Is Slience Golden? Patents Versus Secrecy at the Firm Level", Center for European Economic Research(ZEW) Discussion Paper, 37.
34 Jorda, K. F. (2008), "Patent and Trade Secret Complementariness: An Unsuspected Synergy", Washurn Law Journal, 48 : 1-38.
35 Mosel, M. (2012), "The Role of Patents and Secrecy for Intellectual Property Protection: Theory and Evidence", BGPE Discussion Paper
36 Kortum, S. and Lerner, J. (2000), "Assessing the Contribution of Venture Capital to Innovation", RAND Journal of Economic, 31(4): 674-692.   DOI
37 Levin, R. C., Klevorick, A. K., Nelson, R. and Winder, S. (1987), "Appropriating the Returns from Industrial Research and Development", Brookings Papers on Economic Activity, 18(3): 783-832.
38 Makinen, L. (2007), "To Patent or not to Patent?: An Innovation-level Investigation of the Propensity to Patent", VTT PUBLICATIONS 646
39 OECD (2011), "ISIC REV.3 Technolegy Intensity Definition".
40 Pajak, S. (2009), "Do Firms Rely on Big Secrets? An Analysis of IP Protection Strategies with the CIS 4 Survey", Available at doku.iab.de/fdz/events/2009/Pajak.pdf
41 Png, I. P. L. (2012), "Law and Innovation: Evidence from State Trade Secrets Laws", Available at http://ssrn.com/abstract=1755284
42 Schneider, C. and Veugelers, R. (2013), "Which IP Strategies Do Young Highly Innovative Firms Choose?", KU LEUVEN, MSI_1317, Available at http://ssrn.com/abstract=2382516