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Labor Mobility of Scientists, Technological Diffusion, and the Firm's Patenting Decision

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Author Info
Jinyoung Kim () (University at Buffalo, SUNY)
Gerald Marschke () (University at Albany, SUNY)

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Abstract

We develop and test a model of the patenting and R&D decisions of an innovating firm whose scientist-employees sometimes quit to join or start a rival. In our model, the innovating firm patents to protect itself from its employees. We show theoretically that the risk of a scientist's departure reduces the firm's R&D expenditures and raises its propensity to patent an innovation. We find evidence from firm-level panel data that is consistent with this latter result. Our results suggest that scientists' turnover is associated with cross-industry patenting variation and with recent economy-wide increases in patenting. Scientists' turnover may also partly account for why small firms have high patent-R&D ratios. Ordering information: This article can be ordered from https://pubs3.rand.org/cgi-bin/rje/pdf.cgi.

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Publisher Info
Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 36 (2005)
Issue (Month): 2 (Summer)
Pages: 298-317
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Handle: RePEc:rje:randje:v:36:y:2005:2:p:298-317

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Related research
Keywords: Economic Models of Political Processes: Rent-seeking; Elections; Legislatures; and Voting Behavior Asymmetric and Private Information career concerns; judicial decision-making;

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Find related papers by JEL classification:
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information

Cited by:
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  1. Frank Windmeijer, 2006. "GMM for panel count data models," Bristol Economics Discussion Papers 06/591, Department of Economics, University of Bristol, UK. [Downloadable!]
    Other versions:
  2. Jinyoung Kim & Sangjoon John Lee & Gerald Marschke, 2006. "International Knowledge Flows: Evidence from an Inventor-Firm Matched Data Set," NBER Working Papers 12692, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Jinyoung Kim & Sangjoon John Lee & Gerald Marschke, 2005. "The Influence of University Research on Industrial Innovation," NBER Working Papers 11447, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Hvide, Hans K. & Kristiansen, Eirik G., 2006. "Management of Knowledge Workers," Discussion Papers 2006/7, Department of Finance and Management Science, Norwegian School of Economics and Business Administration. [Downloadable!]
    Other versions:
  5. Hoisl, Karin, 2006. "Tracing Mobile Inventors – The Causality between Inventor Mobility and Inventor Productivity," Discussion Papers in Business Administration 1260, University of Munich, Munich School of Management. [Downloadable!]
    Other versions:
  6. Ari Hyytinen & Mika Maliranta, 2006. "When Do Employees Leave Their Job for Entrepreneurship: Evidence from Linked Employer-Employee Data," Discussion Papers 1023, The Research Institute of the Finnish Economy. [Downloadable!]
  7. Ron Boschma & Rikard Eriksson & Urban Lindgren, 2008. "Labour mobility, related variety and the performance of plants: A Swedish study," Papers in Evolutionary Economic Geography (PEEG) 0809, Utrecht University, Section of Economic Geography, revised May 2008. [Downloadable!]
  8. Ulrich Kaiser & Hans Christian Kongsted & Thomas Rønde, 2008. "Labor Mobility and Patenting Activity," CAM Working Papers 2008-07, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
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