Knowledge Spillovers From Superstar Tech-Firms: The Case of Nokia

By Jyrki Ali-Yrkkö, Reda Cherif, Fuad Hasanov, Natalia Kuosmanen, Mika Pajarinen

October 29, 2021

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Format: Chicago

Jyrki Ali-Yrkkö, Reda Cherif, Fuad Hasanov, Natalia Kuosmanen, and Mika Pajarinen. Knowledge Spillovers From Superstar Tech-Firms: The Case of Nokia, (USA: International Monetary Fund, 2021) accessed November 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Do workers hired from superstar tech-firms contribute to better firm performance? To address this question, we analyze the effects of tacit knowledge spillovers from Nokia in the context of a quasi-natural experiment in Finland, the closure of Nokia’s mobile device division in 2014 and the massive labor movement it implied. We apply a two-stage difference-in-differences approach with heterogeneous treatment to estimate the causal effects of hiring former Nokia employees. Our results provide new evidence supporting the positive causal role of former Nokia workers on firm performance. The evidence of the positive spillovers on firms is particularly strong in terms of employment and value added.

Subject: Employment, Financial sector policy and analysis, Human capital, Labor, Labor productivity, Positive spillovers, Production, Spillovers

Keywords: Appendix B., Difference-in-differences, Effects from Nokia, Employment, Employment, Global, Heterogeneous treatment, Human capital, Human capital, Knowledge spillovers, Knowledge spillovers from Nokia, Labor productivity, Nokia, Nokia employee, Positive spillovers, Specialist hire, Spillover effect, Spillovers, Superstar firm, Superstar firms., Superstar tech-firm, Total expenditures, Value added

Publication Details

Pages:

30
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2021/258
Stock No:

WPIEA2021258
ISBN:

9781589065291
ISSN:

1018-5941

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