True, Where California's statutes affect innovation is in the case where you're trying to raise money. In a state that enforces non-compete agreements you have a harder time if your new venture competes with the place you just left. That is because there is a risk that if you're successful you will be sued by your original employer and shut down. This is not true in California so it is nominally easier to raise funds.
How enforceable are they in other states? I know in the UK there have been a few test cases which seem to have resulted in the interpretation that you can only enforce one if it would otherwise be detrimental to the ex-employer (e.g. starting a new business or taking your contacts with you), otherwise people would find it difficult to move jobs within an industry because you'd almost always be going to a company who could be classed as a competitor.
