TY - JOUR
T1 - Enforceability of noncompetition agreements and firm innovation
T2 - does state regulation matter?
AU - Yin, Desheng
AU - Hasan, Iftekhar
AU - Kobeissi, Nada
AU - Wang, Haizhi
N1 - Publisher Copyright:
© 2017 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2017/4/3
Y1 - 2017/4/3
N2 - In this study, we examine how noncompetition agreements and the mobility of human capital–a core asset of any firm–affect innovations of publicly traded firms in the United States. We find that firms in states with stricter noncompetition enforcement have fewer patent applications. We also examine patent forward citations and find that tougher enforcement of such contracts is associated with less innovative patents. Notably, we find that stronger enforcement of noncompetition agreements impedes innovation for firms facing intense industry labor mobility. High-powered, equity-based compensation positively moderates the relationship between noncompetition enforcement and innovation, but only for the quality of innovation.
AB - In this study, we examine how noncompetition agreements and the mobility of human capital–a core asset of any firm–affect innovations of publicly traded firms in the United States. We find that firms in states with stricter noncompetition enforcement have fewer patent applications. We also examine patent forward citations and find that tougher enforcement of such contracts is associated with less innovative patents. Notably, we find that stronger enforcement of noncompetition agreements impedes innovation for firms facing intense industry labor mobility. High-powered, equity-based compensation positively moderates the relationship between noncompetition enforcement and innovation, but only for the quality of innovation.
KW - Noncompetition agreements
KW - industry labor mobility
KW - innovation
KW - long-term oriented compensation
KW - mobility of human capital
KW - state regulation
UR - https://www.scopus.com/pages/publications/85009727618
U2 - 10.1080/14479338.2016.1276410
DO - 10.1080/14479338.2016.1276410
M3 - 文章
AN - SCOPUS:85009727618
SN - 1447-9338
VL - 19
SP - 270
EP - 286
JO - Innovation: Organization and Management
JF - Innovation: Organization and Management
IS - 2
ER -