Knowledge Fit and Productivity Gains from Employee Mobility

Previous research has established that employee mobility can lead to individual gains in productivity. However, the mechanisms underlying these productivity gains remain the subject of speculation. Using survey data on 869 inventors from 21 countries listed in European patent applications, we show that ‘knowledge fit’ (the extent to which employees’ knowledge is applicable to their new jobs) is positively related to productivity gains from mobility. We further show that the reason for moving (willing or unwilling move) is not directly related to productivity gains. Finally, we find that the relationship between knowledge fit and productivity gains is contingent on the nature of the technology. It is more pronounced in environments involving more tacit knowledge.