Learning-by-hiring: How do rival firms learn from focal firm's hiring |
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| Institution: | 1. National Scientific and Technical Research Council/Centro de Investigaciones para la Transformación (CENIT), National University of San Martin (UNSAM), Av. Presidente Roque Saenz Peña 832, Buenos Aires, Argentina;2. Science and Technology Policy Research Unit (SPRU), University of Sussex, United Kingdom;3. Institute of Development Studies (IDS), University of Sussex, Library Rd, Falmer, Brighton BN1 9RE, United Kingdom;1. Harvard University, United States of America;2. University of Massachusetts Amherst, United States of America;3. School of Economics, University of Bristol, United Kingdom of Great Britain and Northern Ireland;4. University of Bath, United Kingdom of Great Britain and Northern Ireland;1. Henley Business School at the University of Reading, United Kingdom;2. Strathclyde Business School, United Kingdom, and “Alfred D. Chandler Jr. International Visiting Scholar in Business History”, Harvard Business School, Boston MA USA.;1. Ahmedabad University, India;2. Indian Institute of Management, Ahmedabad, India;3. University of Sussex, Hoover Institution, Stanford University, & Indian Institute of Management, Ahmedabad, India;4. University of Utah, Max Planck Institute for Innovation and Competition & NBER, United States of America |
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| Abstract: | Previous studies provide evidence of learning from the mobility of scientists for the source and the hiring firms. However, we have a limited understanding of the competitive implications of such inter-firm mobility and associated learnings. Using a difference–in–difference approach on matched patents in the semiconductor industry in 1981–2010, we find that mobile scientists' patents receive more citations from rival firms after the mobility vis-à-vis before the mobility and vis-à-vis other similar patents. We conclude that rival firms respond to mobilities across other firms by attributing more attention to mobile scientists. Furthermore, the context of the mobility can determine the extent of response from rival firms. Rival firms are more likely to build on a mobile scientist's patents after mobility when the mobility occurs between technologically distant firms, the source firm or the hiring firm has low research experience, or the mobile scientist has considerable experience. |
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