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Is Mobility of Technical Personnel a Source of R&D Spillovers?

Jarle Møen

Norwegian School of Economics

Journal of Labor Economics 2005

Labor mobility is considered to be an important source of knowledge externalities, making it difficult for firms to appropriate returns to research and development (R&D). Interfirm transfers of knowledge embodied in people should be analyzed within a human capital framework. Testing such a framework, I find that the technical staff in R&D‐intensive firms pays for the knowledge they accumulate on the job through lower wages early in their career. They later earn a return on these implicit investments through higher wages. This suggests that the potential externalities associated with labor mobility are, at least partially, internalized in the labor market.

DOI
10.1086/425434
Volume
23 (1)
Pages
81-114
Language
en
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