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Inter-firm technology transfer: partnership-embedded licensing or standard licensing agreements?

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  • John Hagedoorn
  • Stefanie Lorenz-Orlean
  • Hans van Kranenburg

Abstract

When companies decide to engage in technology transfer through exclusive licensing to other firms, they have two basic options: to use standard licensing contracts or to set-up more elaborate partnership-embedded licensing agreements. We find that broader partnership-embedded licensing agreements are preferred with higher levels of technological sophistication of industries, with greater perceived effectiveness of secrecy as a means of appropriability, and when licensors are smaller than their licensees. Innovative differential between companies, innovative supremacy of the licensor and market and technological overlap between partners appear to have no effect on the preference for a particular form of licensing. Copyright 2009 , Oxford University Press.

Suggested Citation

  • John Hagedoorn & Stefanie Lorenz-Orlean & Hans van Kranenburg, 2009. "Inter-firm technology transfer: partnership-embedded licensing or standard licensing agreements?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(3), pages 529-550, June.
  • Handle: RePEc:oup:indcch:v:18:y:2009:i:3:p:529-550
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    File URL: http://hdl.handle.net/10.1093/icc/dtn038
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    Citations

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    Cited by:

    1. Kelchtermans, Stijn & Leten, Bart & Rabijns, Maarten & Riccaboni, Massimo, 2022. "Do licensors learn from out-licensing? Empirical evidence from the pharmaceutical industry," Technovation, Elsevier, vol. 112(C).
    2. Jeffrey J. Reuer & Ramakrishna Devarakonda, 2017. "Partner Selection in R&D Collaborations: Effects of Affiliations with Venture Capitalists," Organization Science, INFORMS, vol. 28(3), pages 574-595, June.
    3. Fernando Almeida, 2021. "Open-Innovation Practices: Diversity in Portuguese SMEs," JOItmC, MDPI, vol. 7(3), pages 1-19, July.
    4. Shivaram V. Devarakonda & Brian T. McCann & Jeffrey J. Reuer, 2018. "Marshallian Forces and Governance Externalities: Location Effects on Contractual Safeguards in Research and Development Alliances," Organization Science, INFORMS, vol. 29(6), pages 1112-1129, December.
    5. Dev K. Dutta & Mary Beth Rousseau, 2019. "Alliance Experience, Industry Conditions, And External Technology Commercialisation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-24, January.
    6. repec:wip:wpaper:3 is not listed on IDEAS
    7. Reuer, Jeffrey & Devarakonda, S.V., 2015. "Mechanisms of hybrid governance : Administrative committees in non-equity alliances," Other publications TiSEM 063d9ccc-59c8-4e76-a77d-8, Tilburg University, School of Economics and Management.
    8. Klueter, Thomas & Monteiro, L. Felipe & Dunlap, Denise R., 2017. "Standard vs. partnership-embedded licensing: Attention and the relationship between licensing and product innovations," Research Policy, Elsevier, vol. 46(9), pages 1629-1643.
    9. Ashton Hawk & Jeffrey J. Reuer & Andrew Garofolo, 2021. "The Impact of Firm Speed Capabilities on the Decision to Partner or Go It Alone," Strategy Science, INFORMS, vol. 6(3), pages 191-208, September.
    10. Suma Athreye & Yong Yang, 2011. "Disembodied Knowledge Flows in the World Economy," WIPO Economic Research Working Papers 03, World Intellectual Property Organization - Economics and Statistics Division, revised Dec 2011.

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