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Technology market intermediaries to facilitate external technology exploitation: The case of IP auctions

  • Tietze, Frank
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    Recently the phenomena of external technology exploitation (ETE) has started to attract attention from scholars, businesses and politicians likewise alongside with a growth of the markets for technology. However, the markets for technology are still characterized by inhibiting obstacles that lead to high transaction costs, thus prohibit efficient transactions and result in market failure. Although, on the one hand the presence of obstacles lead to high transaction costs, the large market potential on the other hand provides incentives for technology market intermediaries (TMI) to develop new exploitation models to facilitate ETE transactions by reducing transaction costs. Throughout this paper we address the general research question of whether and how new exploitation models can actually facilitate ETE. To address this question, in a first step we generate insights into TMIs acting on the markets for technology and derived a conceptual basis for a further understanding of TMIs. Having carried out a detailed review of the literature, we develop a theory based typology for six TMI archetypes. Throughout this exercise we gain insights into the variety of different functions TMIs have on the markets for technology and various new ways how TMIs try to facilitate ETE transactions. Throughout the second part of this paper, we focus on IP auctions as one particular business model of the archetype “IP Broker”. We investigate this “young” business model presenting first insights into two qualitative studies. In a first step we derive a generic IP auction process based on a qualitative, empirical analysis of IP auction processes. We then translate these results into a theory based process view and derive a generic IP auction process as a specific type of an ETE process. Having thus generated a close understanding of the transaction process, we presented results from four cases of successful transactions, i.e. where patents were sold for particular high prices from two SMEs and two MNCs. The case studies are analyzed according to four main aspects including characteristics of the companies that exploited patented technologies (including motives and selection processes), the patented technology as such, the organization of the transaction and the companies’ perceptions regarding the success of the transactions.

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    Paper provided by Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management in its series Working Papers with number 55.

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    Date of creation: 2008
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    Handle: RePEc:zbw:tuhtim:55
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    1. Alfonso Gambardella, 2002. "'Successes' and 'Failures' in the Markets for Technology," Oxford Review of Economic Policy, Oxford University Press, vol. 18(1), pages 52-62, Spring.
    2. Schrader, Stephan, 1991. "Informal technology transfer between firms: Cooperation through information trading," Research Policy, Elsevier, vol. 20(2), pages 153-170, April.
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    6. Howells, Jeremy, 2006. "Intermediation and the role of intermediaries in innovation," Research Policy, Elsevier, vol. 35(5), pages 715-728, June.
    7. Paul Klemperer, 2004. "Auctions: Theory and Practice," Economics Papers 2004-W09, Economics Group, Nuffield College, University of Oxford.
    8. Alfonso Gambardella & Paola Giuri & Alessandra Luzzi, 2006. "The Market for Patents in Europe," LEM Papers Series 2006/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    9. Dirk Czarnitzki & Georg Licht & Christian Rammer & Alfred Spielkamp, 2001. "Rolle und Bedeutung von Intermediären in Wissens- und Technologietransfer," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 54(04), pages 40-49, October.
    10. Thomas W. Malone & Kevin Crowston & George A. Herman (ed.), 2003. "Organizing Business Knowledge: The MIT Process Handbook," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262134292, June.
    11. Granstrand, Ove & Sjolander, Soren, 1990. "Managing innovation in multi-technology corporations," Research Policy, Elsevier, vol. 19(1), pages 35-60, February.
    12. Rothkopf, Michael H & Teisberg, Thomas J & Kahn, Edward P, 1990. "Why Are Vickrey Auctions Rare?," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 94-109, February.
    13. Eichberger, Jurgen & Harper, Ian R., 1997. "Financial Economics," OUP Catalogue, Oxford University Press, number 9780198775409.
    14. von Hippel, Eric, 1987. "Cooperation between rivals: Informal know-how trading," Research Policy, Elsevier, vol. 16(6), pages 291-302, December.
    15. Bessant, John & Rush, Howard, 1995. "Building bridges for innovation: the role of consultants in technology transfer," Research Policy, Elsevier, vol. 24(1), pages 97-114, January.
    16. Bikhchandani, Sushil & Riley, John G., 1991. "Equilibria in open common value auctions," Journal of Economic Theory, Elsevier, vol. 53(1), pages 101-130, February.
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