TY - RPRT AU - Hvide, Hans K. AU - Kristiansen, Eirik Gaard TI - Management of Knowledge Workers PY - 2012/May/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 6609 UR - https://www.iza.org/index.php/publications/dp6609 AB - We study how firm-specific complementary assets and intellectual property rights affect the management of knowledge workers. The main results show 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 protected weakly by complementary assets must sue leaving workers in order to obtain positive profits. Moreover, firms with more complementary assets pay higher wages and have lower turnover, but the higher pay has a detrimental effect on worker initiative. Finally, our analysis suggests that strengthening firms' property rights protection reduces turnover costs but weakens worker initiative. KW - start-ups KW - R&D KW - personnel economics KW - litigation KW - intellectual property rights KW - innovation KW - entrepreneurship KW - worker mobility ER -