Non-Competes, Health Insurance and Other Ugly Limits To Innovation
Limits and creativity run in the same circles. Desire to dig under, work around, leap over and push through is strong motivation to think anew. However, there are limits, that — hmm, — limit. Did you know that a major difference between moribund Detroit and high flyin’ Silicon Valley is the difference in how non-compete agreements are enforced? (Michigan enforces them, California limits them.) In the recent Carnegie Mellon University publication: “Renewing Globalization and Economic Growth in a Post-Crises World – The Future of the G-20 Agenda” Serguey Braguinsky and Steven Klepper write about various ways worker mobility can limit innovation on a regional scale. In addition to visa restrictions, social pressure and lifetime employment guarantees, they use the non-compete as a primary example of the damaging effects of limiting mobility in the United States. I’ve been on both sides of non-compete covenants. I’ve never particularly liked them, but never … Continue reading