Technology licensing under optimal tax policy

Arijit Mukherjee and Yingyi Tsai ()

Journal of Economics, 2013, vol. 108, issue 3, 247 pages

Abstract: This paper examines the role of government policy in technology licensing decision. We show that both the outside and the inside innovators license a new product (or drastic process innovation) to all potential licensees in the presence of tax/subsidy policies. An implication of our analysis is that a monopolist producer may prefer technology licensing in a homogeneous goods industry. Our results also provide a rationale for franchising to multiple sellers. Copyright Springer-Verlag 2013

Keywords: Licensing; Tax; Knowledge diffusion; L13; L24; L40; H25; D43 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:jeczfn:v:108:y:2013:i:3:p:231-247

DOI: 10.1007/s00712-012-0277-5

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