Global Strategic Collaboration: Trade Secrets and Firm Value

Abstract

Intellectual property is gaining increased recognition as one of the most important organizational assets in the highly competitive global marketplace. As companies struggle to seize value from intellectual property, technological advances have prompted the formation of strategic partnerships between companies seeking to exploit unique intellectual assets. However, scholars have paid relatively little attention to the risks involved with intellectual property collaboration, given that relationships may be formed with organizations based in countries that have traditionally ignored intellectual property laws. Despite past advancements protecting intellectual property rights across the globe, the continued lack of effective enforcement remains cause for concern for organizations doing business abroad. Consequently, my primary motivation is to highlight the significance and severity of this issue, in order to guide future research and practice on the capacities necessary to develop effective collaborative relationships on a global scale. Based on emerging legal trends, I propose that U.S. organizations can reduce the anxieties associated with sharing intellectual property abroad by lobbying for increased extraterritorial application of domestic trade secret laws, employing contractual agreements with heightened protections, and championing the importance of intellectual property protections to overseas strategic partners.