International Technology Transfer and Per-Unit Royalties

Donald Wright

Australian Economic Papers, 1993, vol. 32, issue 60, 11-19

Abstract: This paper develops a model in which the mode of technology transfer is endogenous. Per-unit royalties play an important role in license contracts by limiting the competition a licensor faces from a licensee. It is shown that licensing may be the preferred mode of technology transfer even though it creates a competitor. In the case where market share restriction can be used in license contracts it is shown that licensing dominates other modes of technology transfer. Copyright 1993 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

Date: 1993
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