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Privatization in the presence of patent licensing

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  • Shuai Niu

Abstract

This paper analyzes the licensing policy for a cost-reduction technology of a foreign R&D institution when it is faced with a domestic monopoly manufacturer. It is found that, due to objective differences, a public domestic manufacturer will be charged higher than a private domestic manufacturer for a certain licensed technology. Accordingly, to save on the licensing payment made to the foreign R&D institution, the domestic government is recommended to (partly) privatize the public manufacturer. Copyright Springer-Verlag Wien 2015

Suggested Citation

  • Shuai Niu, 2015. "Privatization in the presence of patent licensing," Journal of Economics, Springer, vol. 116(2), pages 151-163, October.
    • Handle: RePEc:kap:jeczfn:v:116:y:2015:i:2:p:151-163
    DOI: 10.1007/s00712-015-0435-7
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    Cited by:

    1. Junichi Haraguchi & Toshihiro Matsumura, 2020. "Implicit protectionism via state enterprises and technology transfer from foreign enterprises," Review of International Economics, Wiley Blackwell, vol. 28(3), pages 723-743, August.
    2. Madhuri H.Shastry & Uday Bhanu Sinha, 2023. "Privatization and Licensing under Public Budget Constraint," Working papers 343, Centre for Development Economics, Delhi School of Economics.
    3. Leonard F. S. Wang & Arijit Mukherjee & Chenhang Zeng, 2020. "Does technology licensing matter for privatization?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(5), pages 1462-1480, September.
    4. Cho, Sumi & Kim, Doori & Lee, Sang-Ho, 2021. "Free licensing strategy and ex post privatization in a mixed oligopoly," MPRA Paper 106126, University Library of Munich, Germany.
    5. Liu, Yi & Tan, Yu & Fang, Yu, 2019. "Innovation spillover, licensing, and ex-post privatization in international duopoly," MPRA Paper 95467, University Library of Munich, Germany.
    6. Yi Liu & Leonard F.S. Wang & Chenhang Zeng, 2023. "Upstream privatization and downstream licensing," International Journal of Economic Theory, The International Society for Economic Theory, vol. 19(1), pages 148-165, March.

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    More about this item

    Keywords

    Technology; Licensing; Privatization; Welfare; L24; L32; L44;
    All these keywords.

    JEL classification:

    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations

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