Patent Licensing and Technological Catch-Up in a Heterogeneous Duopoly
Bruno Badia ()
Review of Industrial Organization, 2019, vol. 55, issue 2, No 5, 287-300
Abstract:
Abstract A cost-reducing innovation is available to Cournot duopolists through licensing. The firms are ex ante heterogeneous and adoption of the innovation impacts them differently. Is it possible for the inefficient duopolist to catch up with its efficient rival? Under certain conditions, yes. The conditions, however, are stringent: It is not sufficient, for instance, that the innovation promotes a change in the efficiency rank of the firms.
Keywords: Patent licensing; Cournot duopoly with heterogeneous firms; Cost-reducing innovation; Technological catch-up (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)
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DOI: 10.1007/s11151-018-09675-1
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