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Get Pennies from many or get a Dollar from one? Multiple licensing in markets for technology

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  • Dang, Jianwei
  • Motohashi, Kazuyuki
  • Huo, Dong

Abstract

This paper extends the licensing decision model in prior studies and proposes a two-stage model that explains the effects of product market competition and patent protection on the number of licenses made between technology suppliers and buyers. Using novel survey data on Japanese firms' licensing activities between 2008 and 2010, our empirical investigation finds that more competitors in licensors' product markets lead to more licenses whereas more competitors in licensees' product markets lead to fewer licenses. Further, empirical results also show that patent protection elicits opposite effects in the two stages such that patented technologies are more likely to be licensed but to fewer licensees, compared with non-patented technologies. Finally, the effects of product market competition and patent appear to interact in their joint influence on the number of licenses.

Suggested Citation

  • Dang, Jianwei & Motohashi, Kazuyuki & Huo, Dong, 2022. "Get Pennies from many or get a Dollar from one? Multiple licensing in markets for technology," Technovation, Elsevier, vol. 113(C).
    • Handle: RePEc:eee:techno:v:113:y:2022:i:c:s0166497221002042
    DOI: 10.1016/j.technovation.2021.102423
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    References listed on IDEAS

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    More about this item

    Keywords

    Multiple licensing; Market for technology; Competition; Patent;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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