DO NON-COMPETES HINDER PROGRESS?
Here is a good economic and business debate for you.
Do non-competes hinder progress, invention, discovery of new technologies?
What region in the United States is known for technological developments, creativity, and an economy based on both? Silicon Valley in California, of course. And what state has a public policy (as well as code provision) prohibiting non-compete agreements? California. Mere coincidence, or does the spirit of competition promote creativity and ingenuity?
Last year, Harvard Business School doctoral student researched the issue – and his results should not surprise you. READ an interview with now Dr. Marx, here. What did he find? That non competes do constrain mobility in a demonstrable way.
To read his full paper, grab some popcorn and check it out online.
If you want to have an even more exciting debate – throw this out at your next dinner party – does the free market system (yes Adam Smith) and capitalism, favor non-competes, or disfavor?
Bottom line – if you know you are in an industry where competition does spur creativity – might want to think twice before you sign one, or at the very least, move to California!