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Management of Knowledge Workers

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  • Hvide, Hans K
  • Kristiansen, Eirik Gaard

Abstract

We study how complementarities and intellectual property rights affect the management of knowledge workers. The main results relay when a firm will wish to sue workers that leave with innovative ideas, and the effects of complementary assets on wages and on worker initiative. We argue that firms strongly protected by property rights may not sue leaving workers in order to motivate effort, while firms weakly protected by complementary assets must sue in order to obtain positive profits. Firms with more complementary assets pay higher wages (and have lower turnover), but such higher pay has a detrimental effect on worker initiative. Our analysis suggests that strengthened property rights protection reduces turnover costs but weakens worker initiative.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6039.

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Date of creation: Jan 2007
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Handle: RePEc:cpr:ceprdp:6039

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Keywords: Entrepreneurship; Innovation; IPR; Litigation; Personnel economics; R&D; Start-ups;

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References

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Cited by:
  1. Englmaier, Florian & Muehlheusser, Gerd & Roider, Andreas, 2010. "Optimal Incentive Contracts under Moral Hazard When the Agent is Free to Leave," CEPR Discussion Papers 7914, C.E.P.R. Discussion Papers.
  2. Parker, Simon C., 2009. "Intrapreneurship or Entrepreneurship?," IZA Discussion Papers 4195, Institute for the Study of Labor (IZA).
  3. Ngo Van Long & Antoine Soubeyran & Raphael Soubeyran, 2012. "Knowledge Accumulation within an Organization," Working Papers 12-03, LAMETA, Universtiy of Montpellier, revised Jan 2012.

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