Market structure and technology licensing: evidence from US manufacturing

Name: Market structure and technology licensing: evidence from US manufacturing
Cite: 11 Applied Econ. Letters 631
Year: 2004
Bluebook cite: Youngjun Kim, Market structure and technology licensing: evidence from US manufacturing, 11 Applied Econ. Letters 631 (2004).
Author: Youngjun Kim
URL
Item Type: article
Summary: Abstract: â€œThis paper empirically investigates how market structure, including firm- and industry-level variables, influences the incentives of companies to license out their technology. Empirical analysis is provided with the help of a panel data set of observed licensing transactions worldwide involving manufacturing companies publicly traded in the USA. The findings show that dominant firms with bigger market shares are actively involved in granting technology licenses. It was also found that companyâ€™s prior involvement in licensing, the concentration and the market size of its primary industry, and the propensity to receive patents (i.e. strength of the intellectual property protection) in that industry are important determinants of the propensity to transfer technology through licensing agreements. Results suggest that transaction costs, strategic considerations, and knowledge appropriability weigh in heavily in explaining firmsâ€™ licensing behaviour.â€

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