Knowledge Leak Prevention Through Aggressive Patent Enforcement Strategy

In "Reputations for Toughness in Patent Enforcement: Implications for Knowledge Spillovers via Inventor Mobility" Professors Agarwal, Ganco, and Ziedonis "find that a firm's litigiousness significantly curtails the dissemination of knowledge anticipated from employee departures, particularly to firms that are relatively disadvantaged to fund or withstand a legal dispute (i.e., that are small, young, or private). The overall effects are similar in magnitude for California-based firms relative to firms headquartered in other states. The study sheds new light on the strategic levers firms use to capture value from investments in human capital and R&D."