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What induces firms to license foreign technologies? International survey evidence

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  • Dirk Dohse
  • Rajeev K. Goel
  • Michael A. Nelson

Abstract

The paper provides insights into drivers of foreign technology licensing from the licensee's perspective, using data across 114 nations. Technology licensing enables licensees to access proven technologies without development delays, although licensors might deny licenses for strategic reasons. Results show that firms with own R&D are more likely to license foreign technologies, as are larger firms and firms in the nations' main business cities. However, the macroeconomic and institutional environment matters as well: domestic interest rates, informal sector competition, and the literacy of a country's labor force all impact foreign technology licensing. Some implications for technology policy are discussed.

Suggested Citation

  • Dirk Dohse & Rajeev K. Goel & Michael A. Nelson, 2019. "What induces firms to license foreign technologies? International survey evidence," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(7), pages 799-814, October.
    • Handle: RePEc:wly:mgtdec:v:40:y:2019:i:7:p:799-814
    DOI: 10.1002/mde.3044
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    Cited by:

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    2. German Blanco & Rajeev K. Goel, 2023. "Do weak institutions undermine global innovation production efficiency?," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1813-1838, October.
    3. Rajeev K. Goel & James W. Saunoris, 2022. "Foreign direct investment (FDI): friend or foe of non-innovating firms?," The Journal of Technology Transfer, Springer, vol. 47(4), pages 1162-1178, August.

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    More about this item

    JEL classification:

    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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