Job Hopping Helped Silicon Valley Thrive. So Why Do Other States Restrict It?
14th April 2016
Freedom works every time it’s tried.
In the 1980s, the United States had two major hubs of technology innovation. Everyone knows about Silicon Valley, but the East Coast had a “Silicon Valley” of its own, located along Route 128 in the suburbs of Boston. When Gov. Michael Dukakis touted the “Massachusetts Miracle” in his 1988 presidential campaign, he was largely talking about Boston’s high-tech boom.
Unfortunately, the Massachusetts Miracle didn’t last. During the 1990s, Silicon Valley boomed while Route 128 companies faltered. And researchers have pointed to a surprising culprit: Massachusetts law strictly enforces agreements that prohibit employees from taking jobs at competing companies. In contrast, California law banned these restrictions, making it easier for Silicon Valley startups to form and to recruit talent from larger companies.