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Academic patent licenses: Roadblocks or signposts for nonlicensee cumulative innovation?

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  • Drivas, Kyriakos
  • Lei, Zhen
  • Wright, Brian D.

Abstract

Academic inventions are key drivers of technical progress in modern economies, and exclusive licensing has become the dominant means of transfer to the private sector. However, the strong licensee incentives generated by exclusive academic licensing are generally assumed to come at the expense of discouragement or diversion of research by nonlicensees. Using data from university campuses and national research laboratories we find that, after exclusive licensing, forward citations by private sector nonlicensees actually increase. An unanticipated exclusive license appears to be a signpost pointing to commercially relevant innovation pathways that nonlicensees follow with successful patented research. Tests using multiple pre-license information disclosures support this signaling hypothesis.

Suggested Citation

  • Drivas, Kyriakos & Lei, Zhen & Wright, Brian D., 2017. "Academic patent licenses: Roadblocks or signposts for nonlicensee cumulative innovation?," Journal of Economic Behavior & Organization, Elsevier, vol. 137(C), pages 282-303.
  • Handle: RePEc:eee:jeborg:v:137:y:2017:i:c:p:282-303
    DOI: 10.1016/j.jebo.2017.03.018
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    Cited by:

    1. repec:eee:indorg:v:56:y:2018:i:c:p:204-228 is not listed on IDEAS
    2. repec:eee:respol:v:47:y:2018:i:6:p:1060-1069 is not listed on IDEAS

    More about this item

    Keywords

    Intellectual property exclusive licensing; Academic invention; Innovation sequence; Technology transfer; Patent citations;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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