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Labor Mobility Of Scientists, Technological Diffusion, And The Firm’S Patenting Decision

  • Jinyoung Kim
  • Gerald Marschke

We develop and test a model of the patenting and R&D decisions of an innovating firm whose scientist-employees sometime 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

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Paper provided by Econometric Society in its series Econometric Society 2004 Far Eastern Meetings with number 586.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:feam04:586
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  11. Woodridge, J.M., 1991. "Multiplicative Panel Data Models without the Strict Exogeneity Assumption," Working papers 574, Massachusetts Institute of Technology (MIT), Department of Economics.
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  15. repec:cup:etheor:v:13:y:1997:i:5:p:667-78 is not listed on IDEAS
  16. Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
  17. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
  18. John Bound & Clint Cummins & Zvi Griliches & Bronwyn H. Hall & Adam B. Jaffe, 1982. "Who Does R&D and Who Patents?," NBER Working Papers 0908, National Bureau of Economic Research, Inc.
    • John Bound & Clint Cummins & Zvi Griliches & Bronwyn H. Hall & Adam B. Jaffe, 1984. "Who Does R&D and Who Patents?," NBER Chapters, in: R&D, Patents, and Productivity, pages 21-54 National Bureau of Economic Research, Inc.
  19. Paula E. Stephan, 1996. "The Economics of Science," Journal of Economic Literature, American Economic Association, vol. 34(3), pages 1199-1235, September.
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