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Are you sure that forbidding non-competence clause was really a big factor in Silicon Valley success. This sounds a little bit to simple. I was reading that it
by piokoch 6y ago
Are you sure that forbidding non-competence clause was really a big factor in Silicon Valley success. This sounds a little bit to simple. I was reading that it was all about initial founding from the military, access to large capital investments, proximity of good universities and existence of whole ecosystem targeted into making creation of startups easier.
In Poland non-competence exists too, but in theory - it can last one year at most and employer has to pay 25% of the last employee income (missing a single payment invalidates clause), so, giving the trouble of paying, handling accounting, etc. companies rarely use that (oddly enough, if this clause is used, it is used for sales people) and I don't see another SV build anywhere here.
- atraac 6y agoIt's worth noting that it depends on employment contract in Poland. Rules (if any) are different for B2B(freelance) contracts. Also NCA itself can differ, from forbidding to work with other companies, or simply forbidding you to poach clients(I've only ever seen this one in use).
- ghaff 6y ago>simply forbidding you to poach clients Which my understanding is you can absolutely do in California as well.
- qppo 6y agoIt basically all derives from Fairchild Semiconductor, which only existed (as did its fairchildren, the companies spawned off it like Intel, AMD, National Semi, etc) because non competes have been unenforceable since 1941. Texas Instruments was also heavily bankrolled by the military and NASA, just like Fairchild. The godfather of venture capital in America is Don Valentine, who founded Sequoia Partners in 1972 - after working for Fairchild and National Semi. There are other places that have good universities and access to capital, like New York City and Boston. Plenty of government spending has gone to tech companies there too. They have noncompetes, we do not. They certainly have their successes, but not to the same degree as Silicon Valley.