• Title/Summary/Keyword: Covenants not to compete

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Comparing the ICT industries of Silicon Valley and Route 128: What's law got to do with it?

  • Timberman, Alex;Seol, Sung-Soo
    • Proceedings of the Korea Technology Innovation Society Conference
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    • 2014.10a
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    • pp.189-203
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    • 2014
  • Silicon Valley's legal foundation in recent years has surfaced on the radar of policy planners who model Silicon Valley's ICT industry. Precisely, the prohibition of covenants not to compete is linked to firm to firm knowledge spillovers by way of mobile workers positioned as nodes in a system of innovation. Meanwhile, traditional frameworks support enforcement of covenants not to compete as a way to encourage R&D into the worker and to prevent the worker's tacit knowledge and know-how from fleeing. This article examines the ICT industry in Silicon Valley and Route 128 to argue that California's unique law is a key factor in the success of Silicon Valley firms. Theoretically, we reconcile the ostensible strife between enforcement and prohibition frameworks by presenting an industrial approach. We contend that selective enforcement by industry can maximize the policy tools of discorded planners.

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Comparing the ICT industries of Silicon Valley and Route 128: What has law got to do with it?

  • Timberman, Alex
    • Asian Journal of Innovation and Policy
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    • v.4 no.1
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    • pp.19-34
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    • 2015
  • Silicon Valley's legal foundation in recent years has surfaced on the radar of policy planners who model Silicon Valley's information and communication technologies (ICT) industry. Precisely, the prohibition of covenants not to compete (CNCs) is linked to firm-to-firm knowledge spillovers by way of mobile workers positioned as nodes in a system of innovation. Meanwhile, traditional frameworks support enforcement of CNCs as a way to encourage R&D activities to the worker and to prevent the worker's tacit knowledge and know-how from fleeing. Amidst the battle for the restraint or release of human capital, we present an industrial approach to reconcile the ostensible strife between enforcement and prohibition frameworks. Theoretically, we contend an industrial approach can maximize the policy tools of discorded planners. Moreover, this article newly compares the ICT industries of Silicon Valley and Route 128 to argue that California's law is a unique factor in the greater success of Silicon Valley firms.

Legal Foundation of Silicon Valley: Lessons for Asian Hi-Tech Districts

  • Timberman, Alex
    • Asian Journal of Innovation and Policy
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    • v.3 no.1
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    • pp.1-24
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    • 2014
  • Policy planners in Asia readily covet high technology districts and regional systems of innovation such as Silicon Valley. We examine the law's role, by way of covenants not to compete (競業禁止條項) in the development of Silicon Valley by reviewing the literature from 1999 through 2013. The research suggests that in certain high-tech districts such as Silicon Valley, there are greater gains in the innovation of a region by prohibiting CNCs. While we emphasize CNC law as the main legal determinant to Silicon Valley's success, the application of trade secret law and the inevitable disclosure doctrine are also factors that can aid or restrict the mobility and knowledge spillover of a region. Even with much explored, perspectives are lacking from a regional innovation systems analysis, and more so in the context of Asian nations. To tackle these gaps, three analytical frameworks are presented that entails labor law, law and economics, and law and innovation. And from within the law and innovation framework, research is introduced in the hope that future discussions on Asian regional innovation systems consider the legal foundation of Silicon Valley.