SoleCRISTransition linkFrontpageTransition linkInstructionsTransition linkLogin Bank of Finland

A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
This is the view page of publication. On this page you can view basic information of publication or go back on previous page using back-action on the bottom of the page. If you want to move to edit the information of publication, use the actions on the bottom of the page or continue using the system from menu.

Enforceability of noncompetition agreements and firm innovation: does state regulation matter?, Innovation: Organization & Management 2 (2017). Yin, Desheng; Hasan, Iftekhar; Kobeissi, Nada; Wang, Haizhi

Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Yin, Desheng; Hasan, Iftekhar; Kobeissi, Nada; Wang, Haizhi 
Number of authors
Status Published
Year of publication 2017 
Date 16.01.2017 
Name of article Enforceability of noncompetition agreements and firm innovation: does state regulation matter? 
Name of journal Innovation: Organization & Management
Volume of issue 19 
Number of issue
Pages 270-286 
Abstract In this study, we examine how noncompetition agreements and the mobility of human capital – a core asset of any firm – affect innovations of publicly traded firms in the United States. We find that firms in states with stricter noncompetition enforcement have fewer patent applications. We also examine patent forward citations and find that tougher enforcement of such contracts is associated with less innovative patents. Notably, we find that stronger enforcement of noncompetition agreements impedes innovation for firms facing intense industry labor mobility. High-powered, equity-based compensation positively moderates the relationship between noncompetition enforcement and innovation, but only for the quality of innovation.
Free text descriptor in Finnish yritykset; innovaatiot; sääntely; human capital; patentit; USA; 
Free text descriptor in English Noncompetition agreements; innovation; industry labor mobility; long-term oriented compensation; state regulation; mobility of human capital 
ISSN / e-ISSN 1447-9338 
auki Internet addresses
Additional information Published online: 16 Jan 2017
Open Access Not open