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.
Study finds stronger trade secret protection leads firms to break down innovation silos
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