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Licensing technology to shape standards: Examining the influence of the industry context

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  • Lichtenthaler, Ulrich

Abstract

Technology standards refer to particular technological solutions, which emerge as the accepted approach to fulfill a particular function. In light of the growing importance of technology standards and network externalities, industrial firms may not only adopt emerging standards, but they can actively shape the standardization processes based on their forecasting activities. One important means to influence standard setting towards a firm's own technology is to foster the technology's adoption by actively licensing it to other organizations. Thus, industrial firms may license technology in order to enhance their future new product performance based on a standard related to their technology. To shed light on these dynamics of standardization processes, we draw on contingency theory and conceptually examine the role of licensing in the emergence of technology standards. We further use new data from two surveys of 79 industrial firms with a three-year lag to analyze how environmental contingency factors related to appropriability, i.e., patent protection and technological turbulence, moderate the relationship between licensing to shape technology standards and a firm's subsequent innovation performance. The data provide strong support for the importance of shaping standards by licensing technology, and the findings have important implications for research into standards, licensing, and appropriability.

Suggested Citation

  • Lichtenthaler, Ulrich, 2012. "Licensing technology to shape standards: Examining the influence of the industry context," Technological Forecasting and Social Change, Elsevier, vol. 79(5), pages 851-861.
  • Handle: RePEc:eee:tefoso:v:79:y:2012:i:5:p:851-861
    DOI: 10.1016/j.techfore.2011.11.004
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    Citations

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    Cited by:

    1. Ryota Nakatani, 2023. "Productivity drivers of infrastructure companies: Network industries utilizing economies of scale in the digital era," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(4), pages 1273-1298, December.
    2. Jiang, Hong & Zhao, Shukuan & Yuan, Yue & Zhang, Li & Duan, Lian & Zhang, Weiyong, 2018. "The coupling relationship between standard development and technology advancement: A game theoretical perspective," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 169-177.
    3. Hong Jiang & Shuyu Sun & Hongtao Xu & Shukuan Zhao & Yong Chen, 2020. "Enterprises' network structure and their technology standardization capability in Industry 4.0," Systems Research and Behavioral Science, Wiley Blackwell, vol. 37(4), pages 749-765, July.
    4. Zhang, Dongyang & Guo, Rui & He, Xiaodan, 2022. "How does the exclusive license stimulate firm’s subsequent innovation? The role of innovation financial input," Research in International Business and Finance, Elsevier, vol. 60(C).
    5. Hong Jiang & Shukuan Zhao & Chang Liu & Yong Chen, 2016. "The role, formation mechanism, and dynamic mechanism of action of technology standards in industrial systems," Information Technology and Management, Springer, vol. 17(3), pages 289-302, September.
    6. Jiang, Hong & Zhao, Shukuan & Zhang, Siwen & Xu, Xiaobo, 2018. "The adaptive mechanism between technology standardization and technology development: An empirical study," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 241-248.
    7. Chigu Kim & Chul Lee & Jina Kang, 2018. "Determinants Of Firm’S Innovation-Related External Knowledge Search Strategy: The Role Of Potential Absorptive Capacity And Appropriability Regime," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(06), pages 1-33, August.
    8. Hong Jiang & Shukuan Zhao & Zhi Li & Yong Chen, 2016. "Interaction between technology standardization and technology development: a coupling effect study," Information Technology and Management, Springer, vol. 17(3), pages 229-243, September.
    9. Yue Li & Hang Guo & Sarah Yvonne Cooper & Hongqi Wang, 2019. "The Influencing Factors of the Technology Standard Alliance Collaborative Innovation of Emerging Industry," Sustainability, MDPI, vol. 11(24), pages 1-17, December.
    10. Hong Jiang & Sipeng Gao & Shukuan Zhao & Hong Chen, 2020. "Competition of technology standards in Industry 4.0: An innovation ecosystem perspective," Systems Research and Behavioral Science, Wiley Blackwell, vol. 37(4), pages 772-783, July.
    11. Jinshi Cheng & Bengang Gong & Bangyi Li, 2018. "Cooperation strategy of technology licensing based on evolutionary game," Annals of Operations Research, Springer, vol. 268(1), pages 387-404, September.

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