Cooperative Markets for Ideas: When does Technology Licensing Combine with R&D Partnerships?
AbstractThe study departs from the traditional view of licensing as a spot market transaction and investigates license integration with R&D partnerships, introducing the concept of licensing combination. Drawing on licensing and R&D partnership literature and adopting the Òtransactional valueÓ approach, we propose two types of antecedents Ð knowledge and dyad features Ð to investigate licensing combination. Using a dataset combining 441 original license agreements with firmsÕ patenting and market activity in the global biopharmaceutical industry, we find a substantial heterogeneity in the ways licensors and licensees jointly exploit markets for knowledge and the specific role of R&D collaboration and minority equity in inter-organizational exchange through licensing. Results show that licensing combination with R&D collaboration is likely when the licensed innovation is embryonic, the licensee is unfamiliar with the licensorÕs technology and partners have different technological backgrounds. Instead, licensing of highly specific knowledge is likely to be supported by minority equity participation on the part of the licensee. Finally, licensing is combined with both forms of partnership in case of competence distance between partners. In the light of the empirical results, four types of licensing combination are proposed for future research.
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Bibliographic InfoPaper provided by Department of Management, Università Ca' Foscari Venezia in its series Working Papers with number 8.
Length: 47 pages
Date of creation: Jul 2012
Date of revision:
Markets for technology; Licensing combination; R&D collaboration; Minority equity participation; Knowledge transfer; Joint value;
Find related papers by JEL classification:
- 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-2012-07-23 (All new papers)
- NEP-COM-2012-07-23 (Industrial Competition)
- NEP-CSE-2012-07-23 (Economics of Strategic Management)
- NEP-INO-2012-07-23 (Innovation)
- NEP-IPR-2012-07-23 (Intellectual Property Rights)
- NEP-SBM-2012-07-23 (Small Business Management)
- NEP-TID-2012-07-23 (Technology & Industrial Dynamics)
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.:
- DiMasi, Joseph A. & Hansen, Ronald W. & Grabowski, Henry G., 2003. "The price of innovation: new estimates of drug development costs," Journal of Health Economics, Elsevier, vol. 22(2), pages 151-185, March.
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