To guard proprietary know-how, many firms separate their inventors into independent groups so that no single employee sees too much of the organization's knowledge. New research published in Strategic Management Journal finds that when U.S. states strengthened trade secret law, high-tech firms relied less on this kind of compartmentalization and connected their inventors more broadly—and the inventions that followed had greater technological impact.
Stronger Trade Secret Laws Enhance Innovation Collaboration in High-Tech Firms
A study published in the Strategic Management Journal indicates that stronger trade secret protections in the U.S. led high-tech firms to reduce compartmentalization among inventors, resulting in more impactful innovations. This research highlights the relationship between legal frameworks and innovation practices. For Iran, understanding these dynamics could inform policies to enhance its own high-tech sector.
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