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An Analysis of Pure‐Revenue Technology Licensing

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  • Neus Palomeras

Abstract

This paper analyzes the incentives of patentholders to license their technologies for pure‐revenue reasons. We hypothesize that this decision is mainly driven by characteristics of the innovation, which determine its technological attractiveness, the relevance of transaction costs in its transfer and the importance of the competition effect. By using the NBER Patent Citations Database and an original dataset of patented technologies devoted to license in an Internet marketplace, we find that importance, innovativeness, fit into the firm's core and scope of the innovation affect the patentholder's willingness to license it. Results increase our awareness on the drivers of technology licensing decisions.

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  • Neus Palomeras, 2007. "An Analysis of Pure‐Revenue Technology Licensing," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(4), pages 971-994, December.
    • Handle: RePEc:bla:jemstr:v:16:y:2007:i:4:p:971-994
    DOI: 10.1111/j.1530-9134.2007.00164.x
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    References listed on IDEAS

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    1. Figueroa, Nicolás & Serrano, Carlos J., 2019. "Patent trading flows of small and large firms," Research Policy, Elsevier, vol. 48(7), pages 1601-1616.
    2. Barirani, Ahmad & Beaudry, Catherine & Agard, Bruno, 2017. "Can universities profit from general purpose inventions? The case of Canadian nanotechnology patents," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 271-283.
    3. Dushnitsky, Gary & Klueter, Thomas, 2017. "Which industries are served by online marketplaces for technology?," Research Policy, Elsevier, vol. 46(3), pages 651-666.
    4. Ashish Arora & Andrea Fosfuri & Thomas Rønde, 2013. "Managing Licensing in a Market for Technology," Management Science, INFORMS, vol. 59(5), pages 1092-1106, May.
    5. Lichtenthaler, Ulrich, 2010. "Determinants of proactive and reactive technology licensing: A contingency perspective," Research Policy, Elsevier, vol. 39(1), pages 55-66, February.
    6. Gambardella, Alfonso & Giarratana, Marco S., 2013. "General technological capabilities, product market fragmentation, and markets for technology," Research Policy, Elsevier, vol. 42(2), pages 315-325.
    7. Seongkyoon Jeong & Sungki Lee, 2015. "Strategic timing of academic commercialism: evidence from technology transfer," The Journal of Technology Transfer, Springer, vol. 40(6), pages 910-931, December.
    8. Mooi, Erik & Wuyts, Stefan, 2021. "Value from technology licensing – The role of monitoring and licensing experience," International Journal of Research in Marketing, Elsevier, vol. 38(4), pages 1034-1054.
    9. Caviggioli, Federico & De Marco, Antonio & Montobbio, Fabio & Ughetto, Elisa, 2020. "The licensing and selling of inventions by US universities," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    10. Karen Ruckman & Ian McCarthy, 2017. "Why do some patents get licensed while others do not?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 667-688.
    11. Hossain, Mokter & Simula, Henri, 2017. "Recycling the unused ideas and technologies of a large corporation into new business by start-ups," Technology in Society, Elsevier, vol. 48(C), pages 11-18.
    12. Nicole Ziegler & Frauke Ruether & Martin Bader & Oliver Gassmann, 2013. "Creating value through external intellectual property commercialization: a desorptive capacity view," The Journal of Technology Transfer, Springer, vol. 38(6), pages 930-949, December.
    13. Seongkyoon Jeong & Jong-Chan Kim & Jae Young Choi, 2015. "Technology convergence: What developmental stage are we in?," Scientometrics, Springer;Akadémiai Kiadó, vol. 104(3), pages 841-871, September.
    14. Seongkyoon Jeong & Sungki Lee & Yeonbae Kim, 2013. "Licensing versus selling in transactions for exploiting patented technological knowledge assets in the markets for technology," The Journal of Technology Transfer, Springer, vol. 38(3), pages 251-272, June.

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