Empirical study regarding the leakage of technological know-how in Japanese firms

Recently, technological know-how has become a significant option to keep the results of research and development confidential, especially in terms of using an open/close strategy. However, since the mobility of human resources and the expansion of firms overseas have increased, the leakage of confidential, technological know-how is of particular concern. Despite its importance, details of its leakage have not been sufficiently revealed since the information regarding technological know-how is not normally open to the public. Therefore, this study focuses on governance and detection activities, and conducts multiple linear regression analysis using the data from a questionnaire survey of Japanese firms to clarify what factors are related to the leakage of technological know-how. As a result, although governance activities are not significantly related to the leakage, the existence of an inverted U-shaped relationship between international detection activities and the leakage of technological know-how is revealed. The results suggest that detection activities themselves possess the deterrent capabilities to prevent the leakage of technological know-how.