Screening Spinouts? How Noncompete Enforceability Affects the Creation, Growth, and Survival of New Firms

Published Online:https://doi.org/10.1287/mnsc.2016.2614

References

  • Agarwal R, Echambadi R, Franco A, Sarkar MB (2004) Knowledge transfer through inheritance: Spinout generation, development, and survival. Acad. Management J. 47(4):501–522.CrossrefGoogle Scholar
  • Autor D, Donohue III J, Schwab S (2006) The costs of wrongful-discharge laws. Rev. Econom. Statist. 88(2):211–231.CrossrefGoogle Scholar
  • Benedetto G, Haltiwanger J, Lane J, McKinney K (2005) Using worker flows in the analysis of the firm. Technical Paper TP-2003-09, Longitudinal Employer-Household Dynamics, U.S. Census Bureau, Washington, DC.Google Scholar
  • Bishara N (2011) Fifty ways to leave your employer: Relative enforcement of noncompete agreements, trends, and implications for employee mobility policy. Univ. Pennsylvania J. Bus. Law 13(3):751–795.Google Scholar
  • Bishara N, Martin K, Thomas R (2015) An empirical analysis of noncompetition clauses and other restrictive postemployment covenants. Vanderbilt Law Rev. 68(1):1–51.Google Scholar
  • Blake H (1960) Employee agreements not to compete. Harvard Law Rev. 73(4):625–691.CrossrefGoogle Scholar
  • Buffkin R (1999) Non-competition clauses in law firm partnership agreements: How far can partnership agreements control future conduct of “lawyers”? J. Legal Profession 23:325–336.Google Scholar
  • Campbell B, Ganco M, Franco A, Agarwal R (2012) Who leaves, where to, and why worry? Employee mobility, entrepreneurship and effects on source firm performance. Strategic Management J. 33(1):65–87.CrossrefGoogle Scholar
  • Conti R (2014) Do non-competition agreements lead firms to pursue risky R&D projects? Strategic Management J. 35(8):1230–1248.CrossrefGoogle Scholar
  • Cooper A, Woo C, Dunkelberg W (1989) Entrepreneurship and the initial size of firms. J. Bus. Venturing 4(5):317–332.CrossrefGoogle Scholar
  • Fallick B, Fleischman C, Rebitzer J (2006) Job-hopping in silicon valley: Some evidence concerning the micro-foundations of a high technology cluster. Rev. Econom. Statist. 88(3):472–481.CrossrefGoogle Scholar
  • Franco A, Mitchell M (2008) Covenants not to compete, labor mobility, and industry dynamics. J. Econom. Management Strategy 17(3):581–606.CrossrefGoogle Scholar
  • Ganco M, Ziedonis R, Agarwal R (2015) More stars stay, but the brightest ones still leave: Job hopping in the shadow of patent enforcement. Strategic Management J. 36(5):659–685.CrossrefGoogle Scholar
  • Garmaise M (2011) Ties that truly bind: Non-competition agreements, executive compensation, and firm investment. J. Law, Econom. Organ. 27(2):376–425.CrossrefGoogle Scholar
  • Gilson R (1999) The legal infrastructure of high technology industrial districts: Silicon valley, route 128, and covenants not to compete. New York Univ. Law Rev. 74(3):575–629.Google Scholar
  • Glynn T (2008) Interjurisdictional competition in enforcing noncompetition agreements: Regulatory risk management and the race to the bottom. Washington and Lee Law Rev. 65(4):1381–1444.Google Scholar
  • Grégoire DA, Shepherd DA (2012) Technology-market combinations and the identification of entrepreneurial opportunities: An investigation of the opportunity-individual nexus. Acad. Management J. 55(4):753–785.CrossrefGoogle Scholar
  • Grossman S, Hart O (1986) The costs and benefits of ownership: A theory of vertical and lateral integration. J. Political Econom. 94(4):691–719.CrossrefGoogle Scholar
  • Hart O, Moore J (1990) Property rights and the nature of the firm. J. Political Econom. 98(6):1119–1158.CrossrefGoogle Scholar
  • Hopenhayn H (1992) Entry, exit, and firm dynamics in long run equilibrium. Econometrica 60(5):1127–1150.CrossrefGoogle Scholar
  • Kaplan S, Stromberg P (2003) Financial contracting: Theory meets the real world: An empirical analysis of venture capital contracts. Rev. Econom. Stud. 70(2):281–315.CrossrefGoogle Scholar
  • Klepper S (2001) Employee startups in high-tech industries. Indust. Corporate Change 10(3):639–674.CrossrefGoogle Scholar
  • Klepper S (2009) Spinouts: A review and synthesis. Eur. Management Rev. 6(3):159–171.CrossrefGoogle Scholar
  • Klepper S, Sleeper S (2005) Entry by spinoffs. Management Sci. 51(8):1291–1306.LinkGoogle Scholar
  • Langton L, Cohen T (2008) Civil bench and jury trials in state courts, 2005. Accessed October 3, 2013, http://www.bjs.gov/content/pub/pdf/cbjtsc05.pdf.Google Scholar
  • Lavetti K, Simon C, White W (2016) The impacts of restricting mobility of skilled service workers: Evidence from physicians. Working paper, Ohio State University, Columbus.Google Scholar
  • Malsberger B (2008) Covenants Not to Compete: A State by State Survey, 6th ed. (Bureau of National Affairs, Washington, DC).Google Scholar
  • Marx M (2011) The firm strikes back: Non-compete agreements and the mobility of technical professionals. Amer. Sociol. Rev. 76(5):695–712.CrossrefGoogle Scholar
  • Marx M, Singh J, Fleming L (2015) Regional disadvantage? Employee non-compete agreements and brain drain. Res. Policy (44):394–404.CrossrefGoogle Scholar
  • Marx M, Strumsky D, Fleming L (2009) Mobility, skills, and the Michigan non-compete experiment. Management Sci. 55(6):875–889.LinkGoogle Scholar
  • Meccheri N (2009) A note on noncompetes, bargaining and training by firms. Econom. Lett. 102(3):198–200.CrossrefGoogle Scholar
  • Paytas J, Berglund D (2004) Technology industries and occupations for NAICS industry data. Report, Center for Economic Development, Heinz School, Carnegie Mellon University, Pittsburgh.Google Scholar
  • Rauch J, Watson J (2015) Client-based entrepreneurship. J. Law, Econom., Organ. 31(1):30–60.CrossrefGoogle Scholar
  • Samila S, Sorensen O (2011) Noncompete covenants: Incentives to innovate or impediments to growth. Management Sci. 57(3):425–438.LinkGoogle Scholar
  • Seegert N (2012) Optimal taxation with volatility: A theoretical and empirical decomposition. Working paper, University of Michigan, Ann Arbor.Google Scholar
  • Shane S (2000) Prior knowledge and the discovery of entrepreneurial opportunities. Organ. Sci. 11(4):448–469.LinkGoogle Scholar
  • Starr E (2016) Consider this: Training, wages, and the enforceability of covenants not to compete. Working paper, University of Maryland, College Park.Google Scholar
  • Starr E, Bishara N, Prescott J (2016a) Noncompetes in the U.S. labor force. Working paper, University of Maryland, College Park.Google Scholar
  • Starr E, Prescott J, Bishara N (2016b) Mobility and knowledge of noncompete laws: Evidence from an information experiment. Working paper, University of Maryland, College Park.Google Scholar
  • Stone K (2002) Knowledge at work: Disputes over the ownership of human capital in the changing workplace. Connecticut Law Rev. 34:721–763.Google Scholar
  • Stroud S (2002) Non-compete agreements: Weighing the interests of profession and firm. Alabama Law Rev. 53(3):1023–1041.Google Scholar
  • Stuart T, Sorenson O (2003) Liquidity events and the geographic distribution of entrepreneurial activity. Admin. Sci. Quart. 48(2):175–201.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.