This paper examines the impact of the state-level legal structure, namely the legal support for non-competition agreements, on research productivity. Specifically, we study how California’s unique lack of non-competition agreement laws influences product develop when controlling for local munificence and firm-level technological capability. Our results indicate that California’s unique legal structure is negatively associated with research productivity as measured by the number of products in development at the time a biotechnology firm goes public. Further, firm size moderates this relationship such that the effect is stronger for smaller biotechnology firms.
Coombs, Joseph E. and Taylor, Porcher
"NON-COMPETITION AGREEMENTS AND RESEARCH PRODUCTIVITY IN THE BIOTECHNOLOGY INDUSTRY,"
Frontiers of Entrepreneurship Research: Vol. 26
, Article 1.
Available at: http://digitalknowledge.babson.edu/fer/vol26/iss14/1