Licensing in the presence of competing technologies

Ashish Arora ()

DEE - Working Papers. Business Economics. WB from Universidad Carlos III de Madrid. Departamento de Economía de la Empresa

Abstract: In technology-based industries, many incumbent fIrms license their technology to other fIrms that will potentially compete with them. Such a strategy is diffIcult to explain within traditional models of licensing. This paper extends the literature on licensing by relaxing the widespread assumption of a "unique" technology holder. We develop a model with many technological trajectories for the production of a differentiated good. We fmd that competition in the market for technology induces licensing of innovations, and that the number of licenses can be ineffIciently large. A strong testable implication of our theory is that the number of licenses per patent holder decreases with the degree of product differentiation.

Keywords: Technology; licensing; Market; structure; Market; for; technology (search for similar items in EconPapers)
Date: 1998-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://e-archivo.uc3m.es/rest/api/core/bitstreams ... d67618c92b50/content (application/pdf)

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:cte:wbrepe:6532

Access Statistics for this paper

More papers in DEE - Working Papers. Business Economics. WB from Universidad Carlos III de Madrid. Departamento de Economía de la Empresa
Bibliographic data for series maintained by Ana Poveda ().