The Impact of Open Innovation on Employee Mobility and Entrepreneurship

34 Pages Posted: 5 Mar 2017

See all articles by Markus Simeth

Markus Simeth

Universidad Carlos III de Madrid

Ali Mohammadi

Copenhagen Business School - Department of Strategy and Innovation; KTH Royal Institute of Technology

Date Written: February 28, 2017

Abstract

Prior research shows that firms can increase their innovation performance by leveraging external sources of knowledge. However, insights related to potential drawbacks of open collaborative approaches for innovation remain scarce. In this paper, we investigate the relationship between R&D collaboration and the departure of skilled employees. Highly qualified scientists and engineers who interact with external partners in the context of R&D collaborations may increase their outside options, resulting in higher rates of employee mobility to other firms and employee entrepreneurship. We analyze our research question using data from the Swedish edition of the Community Innovation (CIS) survey combined with employer-employee register data. Our econometric analysis suggests that a stronger use of research collaborations by firms leads to an increasing number of employee departures. Moreover, we detect heterogeneity for this relationship with respect to the types of employee exits and different collaboration partners.

Keywords: R&D employees, Open Innovation, R&D Collaboration, Employee mobility, Employee Entrepreneurship

JEL Classification: O3

Suggested Citation

Simeth, Markus and Mohammadi, Ali, The Impact of Open Innovation on Employee Mobility and Entrepreneurship (February 28, 2017). Available at SSRN: https://ssrn.com/abstract=2925365 or http://dx.doi.org/10.2139/ssrn.2925365

Markus Simeth (Contact Author)

Universidad Carlos III de Madrid ( email )

CL. de Madrid 126
Madrid, Madrid 28903
Spain

Ali Mohammadi

Copenhagen Business School - Department of Strategy and Innovation ( email )

Kilen
Frederiksberg, 2000
Denmark

KTH Royal Institute of Technology ( email )

Stockholm
Sweden

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