Knowledge Diffusion through Employee Mobility

By April M. Franco, Darren Filson. 2000

345 citations recorded by the source corpus.

In high-tech industries, one important method of diffusion is through employee mobility: many of the entering firms are started by employees from incumbent firms using some of their former employers' technological know-how. This paper explores the effect of incorporating this mechanism in a general industry framework by allowing employees to imitate their employers' know-how. The equilibrium is Pareto optimal since the employees "pay" for the possibility of learning their employers' know-how. The model's implications are consistent with data from the rigid disk drive industry. These implications concern the effects of know-how on firm formation and survival.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/46f23df67cd6d9903c71a0716e0566534fa140d4

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In Economics and Econometrics

Citations in the corpus

Pre-Entry Knowledge, Learning, and the Survival of New Firms (2009, background): “…knowledge and experience enhance its long-run performance and survival (Evans and Leighton 1989, Mitchell 1989, Brüderl et al. 1992, Carroll et al. 1996, Gimeno et al. 1997, Sleeper 1998, Klepper and Simons 2000, Klepper 2002, Agarwal et al. 2004, Delmar and Shane 2006, Franco and Filson 2006).”
KNOWLEDGE TRANSFER THROUGH INHERITANCE: SPIN- OUT GENERATION, DEVELOPMENT, AND SURVIVAL (2004, background): “enhance their knowledge ( Franco & Filson, 2000; Hitt et al., 2001).”
Are You Experienced or Are You Talented?: When Does Innate Talent versus Experience Explain Entrepreneurial Performance? (2012, background): “For example, serial entrepreneurs are more likely to found firms with higher sales (Delmar and Shane, 2006), and with lower failure rates (Bruderl, Preisendorfer and Ziegler, 1992; Dencker, Gruber and Shah, 2009b; Franco and Filson, 2006; Gimeno et al., 1997) than novices.”
Mobility, Skills, and the Michigan Non-Compete Experiment (2009, background): “The growth of industries (Franco and Filson 2000; Klepper 2002; Klepper and Sleeper 2002) and even regions (Rosengrant and Lampe 1992; Saxenian 1994) has been attributed in part to the movement of technical personnel between firms.”
Local entrepreneurial resilience and culture: the role of social values in fostering economic recovery (2015, neutral): “…may be the best method of exploiting knowledge (Audretsch, 1995), regardless of whether this is in the form of spinouts from existing businesses (Mitchell Franco and Filson, 2006), or originates from other sources of knowledge creation such as universities and research institutes (Garnsey and…”
Human Capital, Graduate Migration and Innovation in British Regions (2008, background): “The evidence supporting the role played by the mobility of local human capital in promoting innovation is still quite tentative (Angel 1991; Audrestch and Step han 1996; Almeida and Kogut 1999 ; Breschi and Lissoni 2003; Franco and Filson 2000; Persson 2002; Power and Lundmark 2004).”
Exploring the Knowledge Filter: How Entrepreneurship and University-Industry Relationships Drive Economic Growth ∗ (2006, background): “This pattern can be observed in the laser industry, disk drive industry, tire industry, and the wireless telecommunication industry (Klepper and Sleeper, 2005; Buenstorf and Klepper, 2005; Agarwal et al., 2004; Dahl et al., 2003; Sull, 2001; Franco and Filson, 2000; Christensen, 1993).”
Big Losses in Ecosystem Niches: How Core Firm Decisions Drive Complementary Product Shakeouts (2009, neutral): “Work from the economics and management literatures demonstrates how pre-founding experience of new entrants can determine their performance (Helfat and Lieberman, 2002) and survival (Franco and Filson, 2000; Klepper, 2002; Phillips, 2002; Agarwal et al., 2004; Klepper and Sleeper, 2006).”