Last year, I outlined a bunch of research from the past few years that show how damaging noncompete agreements
are to innovation. In fact, some of the research suggests that the single biggest factor in explaining why Silicon Valley became such a hub for tech innovation is the fact that noncompetes are unenforceable here. Studies comparing Silicon Valley to Boston and Michigan are quite convincing on the importance of allowing greater job mobility in order to promote more innovation. In fact, there's a vocal group in Massachusetts that has put a lot of effort into (finally) getting that state to ban
Of course, it appeared that some were pushing in the opposite direction in California (at least via lawsuit). But the good news is that California's Supreme Court has now reiterated that noncompetes are unenforceable here
. This is a huge victory for innovation in the Valley.