Trade secrets protection and employment of public firms: Evidence from the Uniform Trade Secrets Act
Research Policy · 2025 · Volume 54 · Issue 6
DOI: 10.1016/j.respol.2025.105243
Abstract
I demonstrate that the adoption of the Uniform Trade Secrets Act (UTSA) results in a 5.1% increase in employment among public firms in Compustat. The effects are concentrated in firms with below-median initial employment, higher debt costs, and greater potential for knowledge spillovers . R&D expenditures and the accumulation of intangible assets emerge as key drivers of these employment effects. An analysis of labor demand reveals a 9.4% rise in vacancy postings, particularly for skilled workers, following UTSA adoption. Counties with higher initial exposure to public firms’ labor demand experience declines in unemployment rates, underscoring the UTSA’s non-uniform impact on local labor markets and employment growth.
Keywords
Firm employment growth, Trade secrets protection, UTSA, Vacancy postings
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