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Entrepreneurship and University Licensing

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  • Maria Brouwer

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Abstract

Outside invention has gained in importance as universities are actively seeking commercialization of their inventions since the passage of the Bayh-Dole Act. The paper analyzes the incentives to invent for outside and inside inventors. It is shown that outside inventors have greater incentives to invent than incumbents. Outside inventors can always fully appropriate the gains from invention irrespective of market structures and firm behaviour. Moreover, outside invention prompts incumbents to commercialize an invention in contrast to inside invention. Embryonic inventions could best be commercialized by new enterprises due to the uncertainty of their outcomes. Cooperative invention could boost consumer welfare but constitutes a lackluster incentive to invent. Copyright Springer Science+Business Media, Inc. 2005

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File URL: http://hdl.handle.net/10.1007/s10961-005-0929-5
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Bibliographic Info

Article provided by Springer in its journal The Journal of Technology Transfer.

Volume (Year): 30 (2005)
Issue (Month): 3 (07)
Pages: 263-270

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Handle: RePEc:kap:jtecht:v:30:y:2005:i:3:p:263-270

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Web page: http://www.springerlink.com/link.asp?id=104998

Related research

Keywords: industry dynamics; invention; licensing; property rights; university–business collaboration;

References

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  1. Donald Siegel & David Waldman & Albert Link, 1999. "Assessing the Impact of Organizational Practices on the Productivity of University Technology Transfer Offices: An Exploratory Study," NBER Working Papers 7256, National Bureau of Economic Research, Inc.
  2. Richard Jensen & Marie Thursby, 1998. "Proofs and Prototypes for Sale: The Tale of University Licensing," NBER Working Papers 6698, National Bureau of Economic Research, Inc.
  3. Mowery, David C, 1990. "The Development of Industrial Research in U.S. Manufacturing," American Economic Review, American Economic Association, vol. 80(2), pages 345-49, May.
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Cited by:
  1. Phillip H. Phan & Donald S. Siegel, 2006. "The Effectiveness of University Technology Transfer: Lessons Learned from Qualitative and Quantitative Research in the U.S. and U.K," Rensselaer Working Papers in Economics 0609, Rensselaer Polytechnic Institute, Department of Economics.

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