Hans K. Hvide
() and Eirik G. Kristiansen
Hans K. Hvide: University of Aberdeen Business School, Postal: University of Aberdeen Business School, Edward Wright Building, Dunbar Street, Old Aberdeen, AB24 3QY, Great Britain
Eirik G. Kristiansen: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Abstract: We study how complementarities and intellectual property rights affect the management of knowledge workers. The main results relay when a firm will wish to sue workers that leave with innovative ideas, and the effects of complementary assets on wages and on worker initiative. We argue that firms strongly protected by property rights may not sue leaving workers in order to motivate effort, while firms weakly protected by complementary assets must sue in order to obtain positive profits. Firms with more complementary assets pay higher wages (and have lower turnover), but such higher pay has a detrimental effect on worker initiative. Our analysis suggests that strengthened property rights protection reduces turnover costs but weakens worker initiative.
28 pages, August 4, 2006
Full text files
Questions (including download problems) about the papers in this series should be directed to Stein Fossen ()
Report other problems with accessing this service to Sune Karlsson ().
This page generated on 2018-01-23 23:36:01.