Deals Not Done: Sources of Failure in the Market for Ideas
Iain Cockburn () and
No 19679, NBER Working Papers from National Bureau of Economic Research, Inc
Using novel survey data on technology licensing, we report the first empirical evidence linking the three main sources of failure emphasized in the market design literature (lack of market thickness, congestion, lack of market safety) to deal outcomes. We disaggregate the licensing process into three stages and find that although lack of market thickness and deal failure are correlated in the first stage, they are not in the latter stages, underscoring the bilateral monopoly conditions under which negotiations over intellectual property often occur. In contrast, market safety is only salient in the final stage. Several commonly referenced bargaining frictions (congestion) are salient, particularly in the second stage. Also, universities and firms differ in the stage during which they are most likely to experience deal failure.
JEL-codes: L24 O32 O34 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ipr and nep-pr~
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Published as Ajay Agrawal & Iain Cockburn & Laurina Zhang, 2015. "Deals not done: Sources of failure in the market for ideas," Strategic Management Journal, Wiley Blackwell, vol. 36(7), pages 976-986, 07.
Downloads: (external link)
Journal Article: Deals not done: Sources of failure in the market for ideas (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:19679
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().