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Impact of technology development costs on licensing form in a differentiated Cournot duopoly

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  • Tatsuya Kitagawa
  • Yasushi Masuda
  • Masashi Umezawa

Abstract

We investigate how the type of innovation, either of product or process, influences the licensing scheme. For product innovation, we consider a licensing scheme for a patent holder of a new product facing a potential rival who may invest in technology innovation and enter the market for the new product. The alternative forms of licensing schemes considered are fixed fees and royalties. We then compare this licensing scheme for product innovation with that for process innovation studied in the literature.

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  • Tatsuya Kitagawa & Yasushi Masuda & Masashi Umezawa, 2020. "Impact of technology development costs on licensing form in a differentiated Cournot duopoly," International Journal of Economic Theory, The International Society for Economic Theory, vol. 16(2), pages 153-166, June.
    • Handle: RePEc:bla:ijethy:v:16:y:2020:i:2:p:153-166
    DOI: 10.1111/ijet.12175
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    References listed on IDEAS

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