Regional disadvantage? Employee non-compete agreements and brain drain

Marx, Matt; Singh, Jasjit; Fleming, Lee

doi:10.1016/j.respol.2014.10.006

Cited by 139 publications

(111 citation statements)

References 46 publications

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“…It is clear that policies to promote national, state, and regional levels could have positive or negative influences on entrepreneurship. To illustrate, it is now widely accepted that the lack of enforceability of noncompete agreements in states such as California has had a positive impact on entrepreneurship (Marx, Singh, & Fleming, 2015).…”

Section: Regulations and Policy-related Factorsmentioning

confidence: 99%

On open innovation, platforms, and entrepreneurship

Nambisan

Siegel

Kenney

2018

Strategic Entrepreneurship

365

207

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Research Summary In recent decades, two emergent phenomena have jointly transformed the nature and pursuit of entrepreneurship across industries and sectors: open innovation and platformization. Open innovation involves a shift toward more open and distributed models of innovation, while platformization refers to the increasing importance of digital platforms as a venue for value creation and capture. Together, open innovation and platforms have created numerous opportunities for entrepreneurs and their firms—from serving as inputs for innovation for established firms to participating as complementors on existing platforms. While these entrepreneurial opportunities (and conditions) have manifested themselves in rich and varied ways, our understanding of these new forms of entrepreneurship has lagged behind. In this essay, and in this special issue, our objective is to bring a sharper focus on the important research issues and questions that frame open innovation, platforms, and entrepreneurship. Managerial Summary Digital platforms and open innovation environments have unleashed numerous promising opportunities for entrepreneurs, in industries ranging from consumer software, entertainment, and home appliances to auto, health, and energy. To pursue those opportunities, however, entrepreneurs will need to gain a deeper understanding of the factors that facilitate and constrain them. In this essay, we identify and discuss several of these factors and the associated challenges and highlight the need for additional research. We also consider some of the broader contextual factors, including regulatory policies, digitization, and globalization that shape the emerging opportunities.

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Section: Regulations and Policy-related Factorsmentioning

confidence: 99%

On open innovation, platforms, and entrepreneurship

Nambisan

Siegel

Kenney

2018

Strategic Entrepreneurship

365

207

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“…Marx, Strumsky, and Fleming found that Michigan's policy changes resulted in a brain drain from Michigan ( , Marx et al 2015. Belenzon & Schankerman (2013) find that a state's enforcement of non-compete clauses decreases instate knowledge spillovers, as well as increasing knowledge workers' out-migration.…”

Section: Learning In Networkmentioning

confidence: 99%

Law, Innovation, and Collaboration in Networked Economy and Society

Benkler

2017

Annu. Rev. Law. Soc. Sci.

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Over the past twenty-five years, social science research in diverse fields has shifted its best explanations of innovation from (a) atomistic invention and development by individuals, corporate or natural, to networked learning; (b) market-based innovation focused on material self-interest to interaction between market and non-market practices under diverse motivations; and (c) property rights exclusively to interaction between property and commons. These shifts have profound implications for how we must think about law and innovation. Patents, copyrights, non-compete agreements and trade secret laws are all optimized for an increasingly obsolete worldview. Strong intellectual property impedes, rather than facilitates, innovation when we understand that knowledge flows in learning networks, mixing market and non-market models and motivations, and weaving commons with property are central to the innovation process.

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“…As we study mobile employees, it is important to highlight that though NCCs have a dampening effect on labor mobility (Marx et al, 2009;Png & Samila, 2013), they do not prevent mobility on a large scale -which would restrict the generalizability of our findings. In Prior literature argued that a restriction of labor mobility negatively affects the economic development of geographic regions due to a reduction in knowledge spillovers among firms that otherwise would lead to higher innovative performance on the aggregate level (Marx, Singh, & Fleming, 2015;Saxenian, 1996). Our findings further aggravate these concerns as our results indicate that inventor mobility and alliance formation are complements.…”

Section: Effects Of Inventor Mobilitymentioning

confidence: 99%

Knowing Me, Knowing You: Inventor Mobility and the Formation of Technology-oriented Alliances

Wagner

Goossen

2018

AMJ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. All rights reserved. This document may be distributed for free -electronically or in print -in the same formats as it is available on the website of the ESMT (www.esmt.org) for non-commercial purposes. It is not allowed to produce any derivates of it without the written permission of ESMT. Terms of use: Documents inFind more ESMT working papers at ESMT faculty publications, SSRN, RePEc, and EconStor. We link the hiring of R&D scientists from industry competitors to the subsequent formation of collaborative agreements, namely technology-oriented alliances. By transferring technological knowledge as well as cognitive elements to the hiring firm, mobile inventors foster the alignment of decision frames applied by potential alliance partners in the process of alliance formation thereby making collaboration more likely. Using data on inventor mobility and alliance formation amongst 42 global pharmaceutical firms over 16 years, we show that inventor mobility is positively associated with the likelihood of alliance formation in periods following inventor movements. This relationship becomes more pronounced if mobile employees bring additional knowledge about their prior firm's technological capabilities and for alliances aimed at technology development rather than for agreements related to technology transfer. It is weakened, however, if the focal firm is already familiar with the competitor's technological capabilities. By revealing these relationships, our study contributes to research on alliance formation, employee mobility, and organizational frames.

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Regional disadvantage? Employee non-compete agreements and brain drain

Cited by 139 publications

References 46 publications

On open innovation, platforms, and entrepreneurship

On open innovation, platforms, and entrepreneurship

Law, Innovation, and Collaboration in Networked Economy and Society

Knowing Me, Knowing You: Inventor Mobility and the Formation of Technology-oriented Alliances

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