The design of licensing contracts: Chemicals, Pharmaceuticals, and Electrical Engineering in Imperial Germany
AbstractWe investigate a sample of 180 technology licensing contracts closed by German chemical, pharmaceutical, and electrical engineering companies between 1880 and 1913. Our empirical results suggest that strategic behaviour seems to be relevant for the design of licensing contracts, whereas inventor moral hazard and risk aversion of licensor or licensee seem to be irrelevant. Moreover, our results suggest that uncertainty regarding the profitability of licensed technology influenced the design of licensing contracts. More specifically, profit sharing agreements or producer milestones were typically included into licensing contracts.
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Bibliographic InfoPaper provided by Max Planck Institute for Research on Collective Goods in its series Working Paper Series of the Max Planck Institute for Research on Collective Goods with number 2011_18.
Date of creation: Jul 2011
Date of revision:
Economic History; Germany; pre-1913; Licensing contracts; Technology transfer;
Find related papers by JEL classification:
- N83 - Economic History - - Micro-Business History - - - Europe: Pre-1913
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-25 (All new papers)
- NEP-HIS-2012-01-25 (Business, Economic & Financial History)
- NEP-INO-2012-01-25 (Innovation)
- NEP-IPR-2012-01-25 (Intellectual Property Rights)
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