The Iceberg Model of R&D Disclosure Strategy

(A working paper is coming soon)The core idea behind this paper is based on the observation that, in general, firms tend to minimize outgoing knowledge and maximize incoming knowledge. Furthermore, survey-based evidence suggests that firms prefer secrecy over patents and other disclosure strategies. For instance, even though Amazon is outspending most other organizations (including federal agencies) in R&D, yet the firm publishes very few academic papers. Put simply, Amazon is keeping most of the research activities secret. Furthermore, Amazon rarely reveals information about internal research or failed projects. This strategic disclosure (or lack thereof) is of utmost concern for both policymakers and managers.