ICC Advance Access published online on June 22, 2009
Industrial and Corporate Change, doi:10.1093/icc/dtp031
Is inter-firm labor mobility a channel of knowledge spillovers? Evidence from a linked employer–employee panel
Correspondence: Mika Maliranta, ETLA, The Research Institute of the Finnish Economy, Lönnrotinkatu 4 B FI-00120 Helsinki Finland, e-mail: mika.maliranta{at}etla.fi
Correspondence: Pierre Mohnen, UNU-MERIT, Keizer Karelplein 19 6211 TC Maastricht The Netherlands. e-mail: p.mohnen{at}merit.unimaas.nl
Correspondence: Petri Rouvinen, ETLA, The Research Institute of the Finnish Economy, Lönnrotinkatu 4 B FI-00120 Helsinki Finland. e-mail: petri.rouvinen{at}etla.fi
An employer–employee panel is used to study whether the movement of workers across firms is a channel of unintended diffusion of R&D-generated knowledge. Somewhat surprisingly, hiring workers from others R&D labs to one's own does not seem to be a significant spillover channel. Hiring workers previously in R&D to one's non-R&D activities, however, boosts both productivity and profitability. This is interpreted as evidence that these workers transmit knowledge that can be readily copied and implemented without much additional R&D effort.