Get Pennies from many or get a Dollar from one? Multiple licensing in markets for technology

Jianwei Dang, Kazuyuki Motohashi and Dong Huo

Technovation, 2022, vol. 113, issue C

Abstract: This paper extends the licensing decision model in prior studies and proposes a two-stage model that explains the effects of product market competition and patent protection on the number of licenses made between technology suppliers and buyers. Using novel survey data on Japanese firms' licensing activities between 2008 and 2010, our empirical investigation finds that more competitors in licensors' product markets lead to more licenses whereas more competitors in licensees' product markets lead to fewer licenses. Further, empirical results also show that patent protection elicits opposite effects in the two stages such that patented technologies are more likely to be licensed but to fewer licensees, compared with non-patented technologies. Finally, the effects of product market competition and patent appear to interact in their joint influence on the number of licenses.

Keywords: Multiple licensing; Market for technology; Competition; Patent (search for similar items in EconPapers)
JEL-codes: D23 L24 O34 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:techno:v:113:y:2022:i:c:s0166497221002042

DOI: 10.1016/j.technovation.2021.102423

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