Learning from Multinational Enterprises:Knowledge flows through labour mobility

Labour mobility is one mechanism through which technology and innovation frommultinational enterprises (MNEs) may be transferred to non-multinational enterprises(non-MNEs). Previous research has predominantly focused on such transfers as MNEsfrom developed economies have located to less developed countries. The objective of thispaper is to investigate how labour mobility between MNEs and other firms in a developedeconomy impacts innovation. Using employer-employee panel data on Swedish firms overa 10-year period, we find empirical evidence that spillover through hiring workerspreviously employed at MNEs, particularly domestically owned MNEs, stimulatesinnovations, as measured by patent applications.QC 20160329