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The Governance of Contracts: Empirical Evidence on Technology Licensing Agreements

  • Eric Brousseau
  • Régis Coeurderoy
  • Camille Chaserant

This paper provides new evidence on the contractual governance of technology licensing agreements. Using an international sample of licensing contracts, we explore how contracts are designed to deal with specific contractual risks. In particular, we comparatively assess the influences of transaction attributes, institutional frameworks, and strategic considerations on the creation of licenses. Empirical results reveal that contractual clauses for governance are crafted independently. This leads to a discussion of complementarities between contractual components, which are frequently assumed in theory. Furthermore, our results are certainly amongst the first to provide econometric evidence on the pervasive influence of private institutions on the trading of technology.

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File URL: http://www.ingentaconnect.com/content/mohr/jite/2007/00000163/00000002/art00001
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Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 163 (2007)
Issue (Month): 2 (June)
Pages: 205-235

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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200706)163:2_205:tgocee_2.0.tx_2-q
Contact details of provider: Web page: https://www.mohr.de/jite

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  1. Brickley, James A, 1999. "Incentive Conflicts and Contractual Restraints: Evidence from Franchising," Journal of Law and Economics, University of Chicago Press, vol. 42(2), pages 745-74, October.
  2. Preet S Aulakh & S Tamer Cavusgil & M B Sarkar, 1998. "Compensation in International Licensing Agreements," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(2), pages 409-419, June.
  3. Athey, Susan. & Stern, Scott, 1969-, 1998. "An empirical framework for testing theories about complementarity in orgaziational design," Working papers WP 4022-98., Massachusetts Institute of Technology (MIT), Sloan School of Management.
  4. Ashish Arora, 1995. "Licensing Tacit Knowledge: Intellectual Property Rights And The Market For Know-How," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 4(1), pages 41-60.
  5. Eric Brousseau & Christian Bessy, 2006. "Public and Private Institutions in the Governance of Intellectual Property Rights," Chapters, in: Intellectual Property Rights, chapter 8 Edward Elgar Publishing.
  6. repec:dau:papers:123456789/12331 is not listed on IDEAS
  7. Bernstein, Lisa, 1992. "Opting Out of the Legal System: Extralegal Contractual Relations in the Diamond Industry," The Journal of Legal Studies, University of Chicago Press, vol. 21(1), pages 115-57, January.
  8. Bessy, Christian & Brousseau, Eric, 1998. "Technology licensing contracts features and diversity1," International Review of Law and Economics, Elsevier, vol. 18(4), pages 451-489, December.
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