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Inventions under siege? The impact of technology competition on licensing

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  • Grimpe, Christoph
  • Hussinger, Katrin

Abstract

In recent years, firms have increasingly contributed to and been confronted with a patent landscape characterized by numerous but marginal inventions, overlapping claims and patent fences. Literature suggests that both the fragmentation of ownership and the threat of a firm's patent applications being blocked by competitors' patents lead to increased patenting and inlicensing activity. In this paper, we investigate the effect of expected blocking on firms' engagement in in- and out-licensing. Based on a sample of more than 400 German manufacturing firms our results show that firms engage in in- and out-licensing if technology competition increases which is in line with the argument that licensing can mitigate hold-up problems in technology markets. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 09-039.

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Date of creation: 2009
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Handle: RePEc:zbw:zewdip:09039

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Related research

Keywords: Licensing; blocking patents; discrete and complex technologies; technology competition;

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Cited by:
  1. Florian Köhler, 2011. "Patent cross-licensing, the influence of IP interdependency and the moderating effect of firm size," The Journal of Technology Transfer, Springer, vol. 36(4), pages 448-467, August.

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