When places talk about how they’ll be “the next Silicon Valley” this is one of the reasons none of them have actually managed it. In CA people in many cases can take a good idea that their employer doesn’t want and do something with it themselves. In most other places it will get so tied up in non competes that it’s not worth the effort to even try.
And it’s not just tech, here in Colorado we recently had a restaurant try and shut down another restaurant simply because the newer place’s chef had worked at the older place. They settled but it’s so entirely ridiculous that it could have even started court proceedings in the first place.