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Technology Transfer and its effect on Innovation

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  • Sen, Neelanjan

Abstract

This paper analyses technology transfer and innovation activities by the high cost firm in a Cournot duopoly framework, where technology transfer between the firms may occur after the innovation decision. The two effects of innovation are to access the superior technology of the low cost firm if higher cost prohibits technology transfer and to affect the pricing rule of technology transfer via higher bargaining power. The incentive for innovation is more in fixed-fee licensing than in two-part tariff (royalty) licensing if cost difference between firms is low. The possibility of licensing, irrespective of the licensing scheme, encourages innovation if the cost difference between the firms is high.

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  • Sen, Neelanjan, 2014. "Technology Transfer and its effect on Innovation," MPRA Paper 55542, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:55542
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    References listed on IDEAS

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    Cited by:

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    3. Steinar Andresen & Jon Birger Skjærseth & Torbjørg Jevnaker & Jørgen Wettestad, 2016. "The Paris Agreement: Consequences for the EU and Carbon Markets?," Politics and Governance, Cogitatio Press, vol. 4(3), pages 188-196.
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    5. Neelanjan Sen & Rajit Biswas, 2017. "Indirect Taxes in Oligopoly in Presence of Licensing Opportunities," Journal of Industry, Competition and Trade, Springer, vol. 17(1), pages 61-82, March.

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    More about this item

    Keywords

    Technology licensing; Innovation; Welfare;
    All these keywords.

    JEL classification:

    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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