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A Theory of Worker Turnover and Knowledge Transfer in High-Technology Industries

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  • Kameshwari Shankar
  • Suman Ghosh

Abstract

This paper builds a theoretical model to address evidence on labor mobility patterns in high-technology firms engaged in R&D. Worker turnover in these industries enables the efficient transfer of R&D knowledge across firms in a production environment characterized by volatile returns to R&D investment. We show that both the size and composition of labor turnover are affected by the extent to which R&D knowledge can be transferred and applied across the production processes of different firms. Our analysis also provides implications of such labor mobility for industry growth. We explain how labor turnover in the presence of knowledge transfer has contributed to the success of the high-technology cluster in Silicon Valley.

Suggested Citation

  • Kameshwari Shankar & Suman Ghosh, 2013. "A Theory of Worker Turnover and Knowledge Transfer in High-Technology Industries," Journal of Human Capital, University of Chicago Press, vol. 7(2), pages 107-129.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/671188
    DOI: 10.1086/671188
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    Cited by:

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    2. Yanhong Liu & Xinjian Huang & Weiliang Chen, 2019. "Threshold Effect of High-Tech Industrial Scale on Green Development—Evidence from Yangtze River Economic Belt," Sustainability, MDPI, vol. 11(5), pages 1-21, March.
    3. Eriksson, Tor & Qin, Zhihua & Wang, Wenjing, 2014. "Firm-level innovation activity, employee turnover and HRM practices — Evidence from Chinese firms," China Economic Review, Elsevier, vol. 30(C), pages 583-597.
    4. Emma Lappi, 2024. "New hires, adjustment costs, and knowledge transfer—evidence from the mobility of entrepreneurs and skills on firm productivity," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 33(3), pages 712-737.
    5. Suman Ghosh & Kameshwari Shankar, 2017. "Optimal Enforcement Of Noncompete Covenants," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 305-318, January.
    6. Oz Shy & Rune Stenbacka, 2019. "Anti‐Poaching Agreements In Labor Markets," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 243-263, January.
    7. Shy, Oz & Stenbacka, Rune, 2018. "Dynamic labor market competition and wage seniority," International Journal of Industrial Organization, Elsevier, vol. 61(C), pages 130-154.

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