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Access to a pool of talented employees is an important element of entrepreneurial firms’ ability to build innovative capabilities. Through an empirical examination of two European biotechnology clusters – Cambridge, UK, and Munich, Germany – we investigate the degree to which macro-labor market institutions shape the micro-dynamics of career affiliation networks between scientific employees. Using bibliometric methods to trace careers and a series of social network analysis methods, we examine similarities and differences in career network dynamics across the two clusters. In particular, we investigate whether patterns of long-term employment within most German large firms, as opposed to more short-term employment in the United Kingdom, affects network structure, network performance and network composition in the two clusters. We show that contrary to the expectations of comparative institutional theory …