University Licensing of Patents for Varietal Innovations in Agriculture
AbstractThere has been a sharp increase in the number of patented fruit varieties developed by breeding programs at public universities in the United States. We developed an experiment to examine the revenue stream to universities from the licensing of these varietal innovations. In the experiment we asked subjects to bid for access for a patented input that would be used to manufacture a differentiated product; treatments were employed to solicit bids that were financed by fees, royalties, and a combination of the two mechanisms under exclusive and non-exclusive contracts. All treatments also considered the impact of demand uncertainty for the product that used the patented input. Our empirical results suggest that innovator revenues are greatest when royalties are used alone. In the absence of demand uncertainty, innovator revenues are greatest with an exclusive contract, but with demand uncertainty innovator revenues are greatest with non-exclusive contracts.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150204.
Date of creation: Jun 2013
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Agribusiness; Agricultural and Food Policy;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-06-24 (Agricultural Economics)
- NEP-ALL-2013-06-24 (All new papers)
- NEP-IPR-2013-06-24 (Intellectual Property Rights)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Debapriya Sen & Yair Tauman, 2002.
"General licensing schemes for a cost-reducing innovation,"
Department of Economics Working Papers
02-03, Stony Brook University, Department of Economics.
- Sen, Debapriya & Tauman, Yair, 2007. "General licensing schemes for a cost-reducing innovation," Games and Economic Behavior, Elsevier, vol. 59(1), pages 163-186, April.
- Stamatopoulos, Giorgos & Tauman, Yair, 2008. "Licensing of a quality-improving innovation," Mathematical Social Sciences, Elsevier, vol. 56(3), pages 410-438, November.
- Rebecca Henderson & Adam B. Jaffe & Manuel Trajtenberg, 1998.
"Universities As A Source Of Commercial Technology: A Detailed Analysis Of University Patenting, 1965-1988,"
The Review of Economics and Statistics,
MIT Press, vol. 80(1), pages 119-127, February.
- Henderson, R. & Jaffe, A.B.: Tratenberg, M., 1995. "Universities as a Source of Commercial Technology: A Detailed Analysis of University Patenting 1965-1988," Papers 09-95, Tel Aviv.
- Rebecca Henderson & Adam Jaffe & Manuel Trajtenberg, 1999. "Universities as a Source of Commercial Technology: A Detailed Analysis of University Patenting 1965-1988," NBER Working Papers 5068, National Bureau of Economic Research, Inc.
- Katz, Michael L & Shapiro, Carl, 1986. "How to License Intangible Property," The Quarterly Journal of Economics, MIT Press, vol. 101(3), pages 567-89, August.
- Henry Wang, X., 2002. "Fee versus royalty licensing in a differentiated Cournot duopoly," Journal of Economics and Business, Elsevier, vol. 54(2), pages 253-266.
- Wang, X Henry & Yang, Bill Z, 1999. "On Licensing under Bertrand Competition," Australian Economic Papers, Wiley Blackwell, vol. 38(2), pages 106-19, June.
- Choi, J.P., 1995.
"Technology Transfer with Moral Hazard,"
1995_16, Columbia University, Department of Economics.
- Kamien, Morton I. & Oren, Shmuel S. & Tauman, Yair, 1992. "Optimal licensing of cost-reducing innovation," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 483-508.
- Bradley J. Rickard & Todd M. Schmit & Miguel I. Gómez & Hao Lu, 2013. "Developing Brands for Patented Fruit Varieties: Does the Name Matter?," Agribusiness, John Wiley & Sons, Ltd., vol. 29(3), pages 259-272, 06.
- Sen, Debapriya, 2005. "On the coexistence of different licensing schemes," International Review of Economics & Finance, Elsevier, vol. 14(4), pages 393-413.
- Marie Thursby & Richard Jensen, 2001. "Proofs and Prototypes for Sale: The Licensing of University Inventions," American Economic Review, American Economic Association, vol. 91(1), pages 240-259, March.
- Gopinath, Munisamy & Vasavada, Utpal, 1999. "Patents, R&D, And Market Structure In The U.S. Food Processing Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(01), July.
- Saul Lach & Mark Schankerman, 2004.
"Incentives and Invention in Universities,"
STICERD - Economics of Industry Papers
33, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Saul Lach & Mark Schankerman, 2006. "Incentives and Invention in Universities," CEP Discussion Papers dp0729, Centre for Economic Performance, LSE.
- Saul Lach & Mark Schankerman, 2003. "Incentives and Invention in Universities," NBER Working Papers 9727, National Bureau of Economic Research, Inc.
- Lach, Saul & Schankerman, Mark, 2003. "Incentives and Invention in Universities," CEPR Discussion Papers 3916, C.E.P.R. Discussion Papers.
- Kamien, Morton I & Tauman, Yair, 1986. "Fees versus Royalties and the Private Value of a Patent," The Quarterly Journal of Economics, MIT Press, vol. 101(3), pages 471-91, August.
- Kamien, Morton I & Tauman, Yair, 2002. "Patent Licensing: The Inside Story," Manchester School, University of Manchester, vol. 70(1), pages 7-15, January.
- Fauli-Oller, Ramon & Sandonis, Joel, 2002. "Welfare reducing licensing," Games and Economic Behavior, Elsevier, vol. 41(2), pages 192-205, November.
- H. Bulut & G. Moschini, 2009.
"US universities' net returns from patenting and licensing: a quantile regression analysis,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 18(2), pages 123-137.
- Harun Bulut & GianCarlo Moschini, 2006. "U.S. Universities' Net Returns from Patenting and Licensing: A Quantile Regression Analysis," Center for Agricultural and Rural Development (CARD) Publications 06-wp432, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Bousquet, Alain & Cremer, Helmuth & Ivaldi, Marc & Wolkowicz, Michel, 1998. "Risk sharing in licensing," International Journal of Industrial Organization, Elsevier, vol. 16(5), pages 535-554, September.
- Ana I. Saracho, 2002. "Patent Licensing Under Strategic Delegation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(2), pages 225-251, 06.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.