Baccara et al. (2012) add the analysis of situations in which an employee may either decide to disclose her innovative ideas to an incumbent, or to exploit them to form a start-up (spin-out). In particular, they focus on the design of the optimal contract to be offered to the employee when the incumbent anticipates the renegotiation stage ensuing from internal disclosure of innovative ideas and takes into account the effects of the information leakages that disclosure implies. The employee's bargaining position plays a crucial role for the outcome of such renegotiation. As in our paper, also in Baccara et al. (2012) innovation may be discouraged because of the threat of start-up formation, through the impact of such a threat on the bargaining between the firm and the employee and on the design of the optimal contract. That paper, however, does not relate the employee's outside options to the availability of complementary assets in the market, neither does it investigate the incumbent's investment in R&D as a function of the employee's outside option value, which are the two distinctive features of our approach.