Labor Mobility of Scientists, Technological Diffusion, and the Firm's Patenting Decision
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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|Date of creation:||2001|
|Date of revision:|
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|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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