Trade secret as a factor of ensuring national economic security: the practice of China and the USA (part 2)

Abstract

The global economic and innovative impact of trade secrets is studied. Trade secrets have a broad reach and support the innovation ecosystem by protecting technological, product, market and organizational innovations, as well as providing a key complement and support to other intellectual property (IP). It is shown that misappropriation or theft of trade secrets from OECD countries is 1–3 % of GDP. The cost of trade secret theft has reached $ 1.7 trillion per year. On the example of the economy of China and the USA, the growing importance of intangible assets, commercial secrets and the increasing threats of their theft are shown. In the US, more than 80% of all economic espionage cases and 60 % of trade secret cases are related to China. Given their negative impact on national security, the US is applying new legislative mechanisms to protect IP and trade secrets. The challenges and risks associated with Ukraine’s cooperation with China are analyzed. Recommendations for their minimization and countermeasures against threats are given.