IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v99y2015icp242-251.html
   My bibliography  Save this article

A framework for assessing a portfolio of technologies for licensing out

Author

Listed:
  • Santiago, Leonardo P.
  • Martinelli, Marcela
  • Eloi-Santos, Daniel T.
  • Hortac, Luciana Hashiba

Abstract

Companies invest in R&D to create and exploit new opportunities. In recent years, leading innovative companies have attempted to establish a market for technologies and create leveraging opportunities through such markets. In this paper, we consider the question of how a firm can evaluate its patent portfolio for licensing purposes. To this end, we propose an approach that enables large corporations to scrutinize their portfolio of (patented) technologies and to subsequently set up royalty rate values to support the negotiation process of a particular technology. We use case-based research to develop our approach, which we illustrate with an in-depth assessment of 50 technologies. We conclude by discussing the pros and cons of our approach and its potential generalization to other companies and considering how it can be used to indicate value drivers for R&D strategy.

Suggested Citation

  • Santiago, Leonardo P. & Martinelli, Marcela & Eloi-Santos, Daniel T. & Hortac, Luciana Hashiba, 2015. "A framework for assessing a portfolio of technologies for licensing out," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 242-251.
    • Handle: RePEc:eee:tefoso:v:99:y:2015:i:c:p:242-251
    DOI: 10.1016/j.techfore.2015.07.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162515002103
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2015.07.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Madeira, L.S. & Borschiver, S. & Pereira, N., 2013. "On the assignment of biopharmaceutical patents," Technological Forecasting and Social Change, Elsevier, vol. 80(5), pages 932-943.
    2. Aoki, Reiko & Nagaoka, Sadao, 2004. "The Consortium Standard and Patent Pools," Economic Review, Hitotsubashi University, vol. 55(4), pages 345-357, October.
    3. Michael L. Katz & Carl Shapiro, 1986. "How to License Intangible Property," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(3), pages 567-589.
    4. Arora, Ashish & Fosfuri, Andrea, 2003. "Licensing the market for technology," Journal of Economic Behavior & Organization, Elsevier, vol. 52(2), pages 277-295, October.
    5. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    6. Martha Amram, & Nalin Kulatilaka,, 1998. "Real Options:: Managing Strategic Investment in an Uncertain World," OUP Catalogue, Oxford University Press, number 9780875848457.
    7. Edward F. Sherry & David J. Teece, 2008. "Royalties, evolving patent rights, and the value of innovation," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 8, pages 151-163, World Scientific Publishing Co. Pte. Ltd..
    8. Nancy T. Gallini & Brian D. Wright, 1990. "Technology Transfer under Asymmetric Information," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 147-160, Spring.
    9. Nancy T. Gallini, 1992. "Patent Policy and Costly Imitation," RAND Journal of Economics, The RAND Corporation, vol. 23(1), pages 52-63, Spring.
    10. Reitzig, Markus & Henkel, Joachim & Heath, Christopher, 2007. "On sharks, trolls, and their patent prey--Unrealistic damage awards and firms' strategies of "being infringed"," Research Policy, Elsevier, vol. 36(1), pages 134-154, February.
    11. Lemley, Mark A & Shapiro, Carl, 2007. "Patent Hold-Up and Royalty Stacking," Competition Policy Center, Working Paper Series qt8638s257, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
    12. Hsieh, Chih-Hung, 2013. "Patent value assessment and commercialization strategy," Technological Forecasting and Social Change, Elsevier, vol. 80(2), pages 307-319.
    13. Gallini, Nancy T, 1984. "Deterrence by Market Sharing: A Strategic Incentive for Licensing," American Economic Review, American Economic Association, vol. 74(5), pages 931-941, December.
    14. Michael L. Katz & Carl Shapiro, 1985. "On the Licensing of Innovations," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 504-520, Winter.
    15. Pitkethly, Robert H., 2001. "Intellectual property strategy in Japanese and UK companies: patent licensing decisions and learning opportunities," Research Policy, Elsevier, vol. 30(3), pages 425-442, March.
    16. Rosemarie Ham Ziedonis, 2004. "Don't Fence Me In: Fragmented Markets for Technology and the Patent Acquisition Strategies of Firms," Management Science, INFORMS, vol. 50(6), pages 804-820, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Noh, Heeyong & Seo, Ju-Hwan & Sun Yoo, Hyoung & Lee, Sungjoo, 2018. "How to improve a technology evaluation model: A data-driven approach," Technovation, Elsevier, vol. 72, pages 1-12.
    2. Gupta, Nitish & Park, Hyunkyu & Phaal, Rob, 2022. "The portfolio planning, implementing, and governing process: An inductive approach," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    3. Shen, Huijun & Coreynen, Wim & Huang, Can, 2023. "Prestige and technology-transaction prices: Evidence from patent-selling by Chinese universities," Technovation, Elsevier, vol. 123(C).
    4. Li, Shuying & Zhang, Xian & Xu, Haiyun & Fang, Shu & Garces, Edwin & Daim, Tugrul, 2020. "Measuring strategic technological strength :Patent Portfolio Model," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    5. Mendi, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, José J., 2020. "Cooperation for innovation and technology licensing: Empirical evidence from Spain," Technological Forecasting and Social Change, Elsevier, vol. 154(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arora, Ashish & Fosfuri, Andrea, 2003. "Licensing the market for technology," Journal of Economic Behavior & Organization, Elsevier, vol. 52(2), pages 277-295, October.
    2. Maria Isabella Leone & Keld Laursen, 2011. "Patent Exploitation Strategies and Value Creation," Chapters, in: Federico Munari & Raffaele Oriani (ed.), The Economic Valuation of Patents, chapter 4, Edward Elgar Publishing.
    3. Nisvan Erkal, 2005. "Optimal Licensing Policy in Differentiated Industries," The Economic Record, The Economic Society of Australia, vol. 81(252), pages 51-60, March.
    4. Jean-François Sattin, 2016. "Exploring the survival of patent licensing: some evidence from French foreign agreements," The Journal of Technology Transfer, Springer, vol. 41(3), pages 610-630, June.
    5. Chung, Jiyoon & Lorenz, Annika & Somaya, Deepak, 2019. "Dealing with intellectual property (IP) landmines: Defensive measures to address the problem of IP access," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    6. Aineas Kostas Mallios, 2024. "Licensing and secrecy under imperfect intellectual property protection," Theory and Decision, Springer, vol. 97(3), pages 527-552, November.
    7. Arora, Ashish & Gambardella, Alfonso, 2010. "The Market for Technology," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 641-678, Elsevier.
    8. Sen, Debapriya, 2005. "On the coexistence of different licensing schemes," International Review of Economics & Finance, Elsevier, vol. 14(4), pages 393-413.
    9. Sudipto Bhattacharya & Claude d’Aspremont & Sergei Guriev & Debapriya Sen & Yair Tauman, 2014. "Cooperation in R&D: Patenting, Licensing, and Contracting," International Series in Operations Research & Management Science, in: Kalyan Chatterjee & William Samuelson (ed.), Game Theory and Business Applications, edition 2, chapter 0, pages 265-286, Springer.
    10. Marco, Antonio De & Scellato, Giuseppe & Ughetto, Elisa & Caviggioli, Federico, 2017. "Global markets for technology: Evidence from patent transactions," Research Policy, Elsevier, vol. 46(9), pages 1644-1654.
    11. Ralph Siebert, 2013. "Are Ex Ante and Ex Post Licensing Agreements Useful Instruments to Lessen Uncertainty in R&D?," CESifo Working Paper Series 4535, CESifo.
    12. Nalin Kulatilaka & Lihui Lin, 2006. "Impact of Licensing on Investment and Financing of Technology Development," Management Science, INFORMS, vol. 52(12), pages 1824-1837, December.
    13. Lee, Jong-Seon & Kim, Nami & Bae, Zong-Tae, 2019. "The effects of patent litigation involving NPEs on firms’ patent strategies," Technological Forecasting and Social Change, Elsevier, vol. 149(C).
    14. Almeida Costa, Luis & Dierickx, Ingemar, 2002. "Licensing and bundling," International Journal of Industrial Organization, Elsevier, vol. 20(2), pages 251-267, February.
    15. Debapriya Sen & Giorgos Stamatopoulos, 2009. "Technology Transfer Under Returns To Scale," Manchester School, University of Manchester, vol. 77(3), pages 337-365, June.
    16. Vishwasrao, Sharmila, 2007. "Royalties vs. fees: How do firms pay for foreign technology?," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 741-759, August.
    17. Kou Zonglai & Zhang Jian, 2007. "Endogenous licensing in cumulative innovation," Psychometrika, Springer;The Psychometric Society, vol. 2(3), pages 424-457, July.
    18. Pascale Crama & Bert De Reyck & Zeger Degraeve, 2008. "Milestone Payments or Royalties? Contract Design for R&D Licensing," Operations Research, INFORMS, vol. 56(6), pages 1539-1552, December.
    19. Isabelle Brocas, 2003. "Les enjeux de la réglementation de la recherche et développement," Revue d'économie politique, Dalloz, vol. 113(1), pages 125-148.
    20. Ashish Arora & Andrea Fosfuri & Thomas Rønde, 2013. "Managing Licensing in a Market for Technology," Management Science, INFORMS, vol. 59(5), pages 1092-1106, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:99:y:2015:i:c:p:242-251. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.