Corporate Innovation in the Age of Cyber Threats

Firms’ increasing reliance on information technologies has reshaped the global economy and disrupted entire industries while also presenting new and rapidly evolving sources of risk. Recent successful cyberattacks have harmed consumers, shareholders, and market professionals, often resulting in the illegal appropriation of corporate trade secrets like blueprints, chemical formulas, and customer information (Rowe (2016)). Yet, despite the widespread recognition of these emerging threats, little is known about their effects on corporate innovation, limiting policymakers’ ability to assess their economic consequences and to develop appropriate responses.

In a new study, we provide much needed empirical evidence of how such threats are … Read more