Inter-firm migration of tacit knowledge: law and policy

William van Caenegem, Bond University

Article comments

Van Caenegem, William (2005). Inter-firm migration of tacit knowledge: law and policy. Prometheus , Vol. 23, Iss. 3, pp. 285-306.

This is an electronic version of an article published in Prometheus © 2005 Copyright Taylor and Francis.
Prometheus is available online at http://www.informaworld.com

Abstract

Much knowledge is diffused by the exchange of property rights in intangibles. But tacit knowledge, not being subject to property rights, is instead diffused by migration of knowledgeable individuals between firms. The law impacts significantly on this diffusion mechanism, in particular those rules that determine the use individuals may make of their tacit knowledge after migration to a different firm. The general principle underlying the relevant law is that individuals are free to migrate with all their tacit knowledge. Nonetheless there are some narrow exceptions to this principle. That these exceptions remain narrow and carefully policed by the courts is important because imposing too many restraints on use of tacit knowledge post-term would have a negative impact on real innovation.