The “Profitability” of Technology Licensing by U.S. Multinationals: A Framework for Analysis and an Empirical Study

Farok J Contractor
Additional contact information
Farok J Contractor: The Wharton School

Journal of International Business Studies, 1980, vol. 11, issue 2, 40-62

Abstract: The fees or compensation charged by technology licensing companies to recipient firms overseas have long been subject to debate. Opinion has ranged from a cost-related pricing to a monopolistic pricing model where the price or compensation is considerably higher than the variable costs of effecting a transfer. The empirical study covering 102 technology licenses shows that whereas compensation levels greatly exceed transfer costs, statistically they are strongly related. Compensation levels are influenced by the extent of services rendered to the licensee and by his scale of production. Important differences were manifest between industrialized nations and LDCs, between product types, and between patented and unpatented technologies.© 1980 JIBS. Journal of International Business Studies (1980) 11, 40–62

Date: 1980
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v11/n2/pdf/8490604a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v11/n2/full/8490604a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:11:y:1980:i:2:p:40-62

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().