The secret of the success of Silicon Valley is that the agreement not to compete is not valid in California

Professor Sloan School of Management at MIT Matt Marks and colleagues объяснил why the success of Silicon Valley to a large extent depends on local legislation. The famous cradle of technological innovation has arisen due to the large accumulation of talented minds in one place. And it, in turn, was made possible because California does not work agreement not to compete.

Agreement not to compete (non-compete agreement, NCA) - a special agreement between the employer and the employee, which can be enclosed together with the more well-known non-disclosure agreement (Non-disclosure agreement, NDA). According to the NCA employee is not entitled in the event of his dismissal to accept offers of work in the business, such as that which he had to leave. The meaning is simple and NCA is to prevent former employees the opportunity to work for a competitor or to organize your own business like. In other words, if the employee had access to some of the technology of commercial interest, then it is forbidden under threat of legal action over a period of time working in companies where knowledge and previous experience could be used to the detriment of current employer the previous.

Unlike most states, California law prohibits enters into an agreement not to compete. It automatically turns the state into a real Mecca for talented people who are free to choose between a job offer without fear of legal action by their former employers. Simultaneously, other states are experiencing a real "brain drain", observing how the most successful people find the best choice to move to California and get a chance to work in Silicon Valley.

As an example, lead researchers Michigan. They analyzed the statistics of people who have received from 1975 to 2005-th-th year, at least two patents in the state. In 1985, the government abolished the long-acting Michigan before a ban on the conclusion of NCA. This decision immediately raised twice the number of patent owners who have decided to leave Michigan. At the same time, the state noted the fall in agricultural production and the production of cars.

Despite the ban NCA in California, technology giants of Silicon Valley in employment were seen still in the proposal to sign the NCA. For example, known , Steve Jobs banned other companies to hire even former employees of Apple. He was able to ask this through signed in 2005, & quot; nonaggression pact on personnel & quot ;. Last year, 64,000 employees Google, Apple, Intel and Adobe подали a class action lawsuit accusing them of cuts in wages in the total amount of $ 9 billion. All the companies have chosen not to deal with the US Department of Justice and agreed to pay compensation to the plaintiffs of $ 324 million.

Source: geektimes.ru/post/247550/