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Knowledge diffusion through employee mobility

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Author Info
April Mitchell Franco
Darren Filson

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Abstract

In high-tech industries, one important method of diffusion is through employee mobility: many of the entering firms are started by employees from incumbent firms using some of their former employers’ technological know-how. This paper explores the effect of incorporating this mechanism in a general industry framework by allowing employees to imitate their employers’ know-how. The equilibrium is Pareto optimal since the employees “pay” for the possibility of learning their employers’ know-how. The model’s implications are consistent with data from the rigid disk drive industry. These implications concern the effects of know-how on firm formation and survival.

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Paper provided by Federal Reserve Bank of Minneapolis in its series Staff Report with number 272.

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Date of creation: 2000
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Handle: RePEc:fip:fedmsr:272

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Keywords: Technological innovations ; Research and development;

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  4. Irwin, Douglas A & Klenow, Peter J, 1994. "Learning-by-Doing Spillovers in the Semiconductor Industry," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1200-1227, December. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Montserrat Vilalta-Bufi, Departament de Teoria Economica and CAEPS (Universitat de Barcelona) and & Departament d'Economia i Historia Economica (Universitat Autonoma de Barcelona), 2008. "Inter-firm labor mobility and knowledge diffusion: a theoretical approach," Working Papers in Economics 210, Universitat de Barcelona. Espai de Recerca en Economia. [Downloadable!]
  2. Satyajit Chatterjee & Esteban Rossi-Hansberg, 2007. "Spin-offs and the Market for Ideas," NBER Working Papers 13198, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Andres Almazan & Javier Suarez & Sheridan Titman, 2007. "Firms' Stakeholders and the Costs of Transparency," NBER Working Papers 13647, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Florian Arun Taeube, 2004. "Proximities and Innovation Evidence from the Indian IT Industry in Bangalore," DRUID Working Papers 04-10, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  5. Darren Filson & Richard T. Gretz, 2003. "Strategic Innovation and Technology Adoption in an Evolving Industry," Claremont Colleges Working Papers 2003-08, Claremont Colleges. [Downloadable!]
    Other versions:
  6. Salvador Barrios & Eric Strobl, 2004. "Learning by Doing and Spillovers: Evidence from Firm-Level Panel Data," Review of Industrial Organization, Springer, vol. 25(2), pages 175-203, 06. [Downloadable!] (restricted)
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  7. Darren Filson & Bunchon Songsamphant, . "Horizontal Mergers and Exit in Declining Industries," Claremont Colleges Working Papers 2001-13, Claremont Colleges. [Downloadable!]
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  8. Malte Schwoon, 2006. "Learning-by-doing, Learning Spillovers and the Diffusion of Fuel Cell Vehicles," Working Papers FNU-112, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2006. [Downloadable!]
  9. Schivardi, Fabiano & Schneider, Martin, 2005. "Strategic Experimentation and Disruptive Technological Change," CEPR Discussion Papers 4925, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  10. Roberto Fontana & Lionel Nesta, 2007. "Entry, Innovation and Exit. Evidence from the LAN switch Industry," Documents de Travail de l'OFCE 2007-02, Observatoire Francais des Conjonctures Economiques (OFCE). [Downloadable!]
  11. Agarwal, Rajshree & Echambadi, Raj & Franco, April M. & Sarkar, M. B., 2002. "Knowledge Transfer through Congenital Learning: Spin-Out Generation, Growth and Survival," Working Papers 02-0101, University of Illinois at Urbana-Champaign, College of Business. [Downloadable!]
  12. Jeffrey R. Campbell & Mariacristina De Nardi, 2007. "A conversation with 590 nascent entrepreneurs," Working Paper Series WP-07-20, Federal Reserve Bank of Chicago. [Downloadable!]
    Other versions:
  13. Boyan Jovanovic, 2007. "Investment Options and the Business Cycle," NBER Working Papers 13307, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  14. Roberto Fontana & Lionel Nesta, 2007. "Product Innovation and Survival in a High-Tech Industry," CESPRI Working Papers 208, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Dec 2007. [Downloadable!]
    Other versions:
  15. Jaakko Simonen & Philip McCann, 2008. "Innovation, R&D cooperation and labor recruitment: evidence from Finland," Small Business Economics, Springer, vol. 31(2), pages 181-194, August. [Downloadable!] (restricted)
  16. Michael S. Dahl & Christian Ø.R. Pedersen & Bent Dalum, 2003. "Entry by Spinoff in a High-tech Cluster," DRUID Working Papers 03-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  17. Pamela Mueller, 2007. "Exploiting Entrepreneurial Opportunities: The Impact of Entrepreneurship on Growth," Small Business Economics, Springer, vol. 28(4), pages 355-362, April. [Downloadable!] (restricted)
  18. Mariagiovanna Baccara & Ronny Razin, 2004. "Curb Your Innovation: Corporate Conservatism in the Presence of Imperfect Intellectual Property Rights," Levine's Working Paper Archive 122247000000000194, David K. Levine. [Downloadable!]
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  19. Peter Thompson & Steven Klepper, 2006. "Intra-Industry Spinoffs," Working Papers 0605, Florida International University, Department of Economics. [Downloadable!]
  20. Darren Filson & April Mitchell Franco, . "Industry Evolution: New Technologies and New Firms," Claremont Colleges Working Papers 1999-15, Claremont Colleges. [Downloadable!]
  21. Malte Schwoon, 2006. "A Tool to Optimize the Initial Distribution of Hydrogen Filling Stations," Working Papers FNU-110, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2006. [Downloadable!]
  22. Zhu Wang & Daniel Yi Xu, 2008. "Network Effects and Geographic Concentration of Industry," Working Papers 08-14, NET Institute, revised Sep 2008. [Downloadable!]
  23. Combes, Pierre-Philippe & Duranton, Gilles, 2001. "Labour Pooling, Labour Poaching and Spatial Clustering," CEPR Discussion Papers 2975, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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