Motta, Massimo; Rønde, Thomas - Økonomisk Institut, Copenhagen Business School - 2002
We show that when the researcher’s (observable but not contractible) contribution <p> to innovation is crucial, a covenant not to compete (CNC) reduces e.ort and profits <p> under both spot and relational contracts. Having no CNC allows the researcher to <p> leave for a rival. This alleviates a...</p></p></p>