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How does firm size affect technology licensing? Empirical evidence from China

Ming Li, Xiangdong Chen and Gupeng Zhang ()
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Ming Li: School of Economics and Management, Beihang University
Xiangdong Chen: School of Economics and Management, Beihang University
Gupeng Zhang: School of Public Policy and Management, University of Chinese Academy of Sciences

Scientometrics, 2017, vol. 112, issue 3, 1249-1269

Abstract: Abstract Technology licensing is viewed as the key factor for activating the sleeping patents. This study re-examines the relationship between the firm size and its technology licensing activity. The empirical results show that there is a U-shaped relationship between the firm size and technology licensing. However, this U-shaped relationship appears only in the markets with high competition, which confirms a moderate role of the technology competition in the relationship between the firm size and technology licensing. Chinese firms lag behind developed countries in terms of the licensing strategies. e.g., Chinese firms have fewer patents that are cross licensed. China’s export-oriented firms show relatively more positive licensing propensity, where large, small and medium sized firms do not show essentially different willingness to license out their patents compared with non export-oriented firms. China’s state owned firms are less likely to license out their patents compared with that of private firms. Policy implications are presented at the end of this study.

Keywords: Patent; Technology licensing; Firm size; Export-oriented firms; State-owned Firms; Licensing propensity; Technology competition (search for similar items in EconPapers)
Date: 2017
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