Turns out its not just the chardonnay and the hot tubs that keep things churning in California.

Three economists now have empirical evidence, reports the New York Times that the labor market is more flexible in California and that has helped Silicon Valley maintain its innovative edge over other technology centers, even Boston’s Route 128.

Statistics gathered over a decade show, according to the new research that the labor market has encouraged innovation because Silicon Valley workers are 40 percent more likely to change jobs in any given month than the average U.S. college graduate.

The secret to California’s success: The non-complete agreement was outlawed in the Golden State in the late 19th century and so the usual harness to keep a valuable employee out of the market simply does not exist.

It makes you wonder what would happen in cases like the fight between Wynn Resorts and Landry’s Restaurants where Wynn has accused the new owner of the Golden Nugget Laughlin of stealing away General Manager Frank Toddre.

Last month, Steve Wynn told the Las Vegas Sun he was pursuing the fight against Landry’s because it had “important consequences” for gaming companies.

“One Las Vegas company, without so much as a phone call, steals one of my employees,” he said. “If we can’t protect fundamental trade secrets from competitors, then what good is the law?”