Knowledge catalysts: The role of generalist incumbents in post-hiring knowledge integration

Abstract

Learning-by-hiring is deemed an important channel through which firms tap into external knowledge, yet recent research shows that, post-hiring, incumbent inventors make only limited use of hiring-brought knowledge. This study suggests the mix of generalists among hiring firm incumbent inventors as an important factor promoting the post-hiring use of hired inventors' pre-hire knowledge by incumbents, especially in entering unexperienced knowledge domains. Exploiting a series of U. S. State R&D tax credits policies as an exogenous shock to the composition of hiring firm inventors, we find evidence supportive of our propositions. Our study contributes to the learning-by-hiring literature by demonstrating the importance of a hiring firm's human capital composition in facilitating post-hiring knowledge integration.