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Technology Transfer Under Returns To Scale

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  • DEBAPRIYA SEN
  • GIORGOS STAMATOPOULOS

Abstract

In this paper we consider the licensing of a cost-reducing innovation by an outside innovator that uses optimal combinations of upfront fees and royalties in a Cournot duopoly characterized by non-constant returns to scale. The main conclusion of our theoretical analysis is that incidence of positive royalties and diffusion of innovations are both inversely related to economies of scale. Our analysis provides a plausible explanation of the variation of licensing policies across industries. Copyright © 2009 The Authors. Journal compilation © 2009 Blackwell Publishing Ltd and The University of Manchester.

Suggested Citation

  • Debapriya Sen & Giorgos Stamatopoulos, 2009. "Technology Transfer Under Returns To Scale," Manchester School, University of Manchester, vol. 77(3), pages 337-365, June.
  • Handle: RePEc:bla:manchs:v:77:y:2009:i:3:p:337-365
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    References listed on IDEAS

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    Cited by:

    1. Sen, Debapriya & Stamatopoulos, Giorgos, 2016. "Licensing under general demand and cost functions," European Journal of Operational Research, Elsevier, vol. 253(3), pages 673-680.
    2. Yair Tauman & Debrapiya Sen, 2012. "Patents and Licenses," Department of Economics Working Papers 12-05, Stony Brook University, Department of Economics.
    3. Arijit Mukherjee & Yingyi Tsai, 2013. "Technology licensing under optimal tax policy," Journal of Economics, Springer, vol. 108(3), pages 231-247, April.
    4. Stefano Colombo & Luigi Filippini, 2016. "Revenue royalties," Journal of Economics, Springer, vol. 118(1), pages 47-76, May.
    5. Neelanjan Sen, 2015. "Technology Transfer in Oligopoly in Presence of Fixed-Cost in Production," Journal of Industry, Competition and Trade, Springer, vol. 15(4), pages 383-409, December.
    6. BHATTACHARYA, Sudipto & D’ASPREMONT, Claude & GURIEV, Sergei & SEN, Debapriya, 2012. "Cooperation in R&D: patenting, licensing and contracting," CORE Discussion Papers 2012055, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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