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

  • Gerald Marschke
  • Jinyoung Kim

We develop and test a model of the patenting and R&D decisions of an innovating firm whose researcher-employees sometime quit to join or start a rival. In our model, the innovating firm patents to protect itself from its workers. We show theoretically that the risk of a scientist's departure raises the firm's propensity to patent an innovation and reduces its research expenditures, which is confirmed in our empirical study of firm-level panel data. Our results suggest that the scientists' turnover partly explains cross-industry patenting variation, recent increases in patenting, and why small firms have high patent-R&D ratios.

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Paper provided by University at Albany, SUNY, Department of Economics in its series Discussion Papers with number 01-03.

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Date of creation: 2001
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Handle: RePEc:nya:albaec:01-03
Contact details of provider: Postal: Department of Economics, BA 110 University at Albany State University of New York Albany, NY 12222 U.S.A.
Phone: (518) 442-4735
Fax: (518) 442-4736

Order Information: Postal: Department of Economics, BA 110 University at Albany State University of New York Albany, NY 12222 U.S.A.
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