Emerging Tech Investigate

Recruiting For Ideas: How Firms Exploit The Prior Inventions Of New Hires

Download now Free registration required

Executive Summary

When firms recruit inventors, they acquire not only the use of their skills but also enhanced access to their stock of ideas. But do hiring firms actually increase their use of the new recruits' prior inventions? The estimates suggest they do, quite significantly in fact, by approximately 202% on average. However, this does not necessarily reflect widespread "learning-by-hiring." In fact, the authors estimate that a recruit's exploitation of her own prior ideas accounts for almost half of the above effect. Furthermore, although one might expect the recruit's role to diminish rapidly as her tacit knowledge diffuses across her new firm; the estimates indicate that her importance is surprisingly persistent over time

  • Format: PDF
  • Size: 738.82 KB