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This paper empirically analyzes technology licensing with the help of a large panel data set of observed licensing transactions involving United States companies across all sectors during the 1990s. The stock of technological knowledge of the licensor, this company’s prior licensing experience, the rate of growth of its primary industry, the strength of the intellectual property protection regime in that industry, and the nature of the new technologies produced by the licensor are found to be important determinants of the propensity to sell technology through nonexclusive licenses. The degree of technological/product complexity of the primary industry of the licensor proved a significant explanatory factor of the propensity for exclusive licensing (negative effect) and for cross licensing (positive effect). There are indications of a U-shaped relationship between stocks of technological knowledge and company tendency to sell technology.
Young Jun Kim, Adjunct Professor, Department of Economics
Nicholas S. Vonortas, Associate Professor of Economics and International Affairs; Director, Center for International Science and Technology Policy
The GW Center for the Study of Globalization
2033 K Street, NW, Suite 230 • Washington, DC 20052 • Phone: (202) 994-5206 • Fax: (202) 994-5284
Email: gwcsg@gwu.edu • http://gstudynet.org/