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Noncompetes and inventor mobility : specialists, stars, and the Michigan experiment

Author: Matt Marx; Deborah Strumsky; Lee Fleming; Harvard Business School. Division of Research.
Publisher: [Boston] : Division of Research, Harvard Business School, ©2007.
Series: Working paper (Harvard Business School. Division of Research), 07-042.
Edition/Format:   Book : English
Database:WorldCat
Summary:
Several scholars have documented the positive consequences of job-hopping by inventors, including knowledge spillovers and agglomeration and the concentration of spinoffs. This work investigates a possible antecedent of inventor mobility: regional variation in the enforcement of postemployment noncompete covenants. While previous research on non-competes has been largely focused on California and Silicon Valley, we  Read more...
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Details

Document Type: Book
All Authors / Contributors: Matt Marx; Deborah Strumsky; Lee Fleming; Harvard Business School. Division of Research.
OCLC Number: 81150551
Notes: "January 17, 2007"--Added t.p.
Description: 32 p. : ill. ; 28 cm.
Series Title: Working paper (Harvard Business School. Division of Research), 07-042.
Responsibility: Matt Marx, Deborah Strumsky, Lee Fleming.

Abstract:

Several scholars have documented the positive consequences of job-hopping by inventors, including knowledge spillovers and agglomeration and the concentration of spinoffs. This work investigates a possible antecedent of inventor mobility: regional variation in the enforcement of postemployment noncompete covenants. While previous research on non-competes has been largely focused on California and Silicon Valley, we exploit Michigan's inadvertent reversal of its noncompete enforcement legislation as a natural experiment to investigate the impact of noncompetes on mobility. Using the U.S. patent database and a differences-in-differences approach between inventors in states that did not enforce and did not change enforcement of non-compete laws, we find that relative mobility decreased by 34% in Michigan after the state reversed its policies. Moreover, this effect was amplified 14% for "star" inventors and 17% for "specialist" inventors.

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