International technology licensing: Monopoly rents, transaction costs and exclusive rights

Aulakh, Preet S.; Jiang, Marshall S.; Pan, Yigang

doi:10.1057/jibs.2009.19

Cited by 44 publications

(49 citation statements)

References 59 publications

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“…In the thirty years from 1975 to 2005, the global value of royalties and licence fees increased 25 times from 4 to 100 USD billion (Lopez, 2008). Further growth in technology licensing is expected due to globalisation, shortening technology life cycles, and the increasing cost of research and development (Aulakh, Jiang, & Pan, 2010). In addition, there have been major institutional improvements in the whole regions of transition and emerging economies, e.g.…”

Section: Technology Transfermentioning

confidence: 99%

“…Central and Eastern Europe (Collins & Troilo, 2015). As a result, the internalisation of technological advantage and direct investment in these economies becomes less efficient relative to the more flexible alternative of technology licensing to local firms (Aulakh, Jiang, & Pan, 2010). The trade-off between setting up a subsidiary and internalising technological advantage versus licensing with an indigenous firm is well established in international business theory (Chen, 2005).…”

Section: Technology Transfermentioning

confidence: 99%

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Competitiveness, Technology Licensing, and Ease of Paying Taxes: A 30-Country Study

Troilo

Zdziarski

Collins

2017

EBER

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Section: Technology Transfermentioning

confidence: 99%

Section: Technology Transfermentioning

confidence: 99%

Competitiveness, Technology Licensing, and Ease of Paying Taxes: A 30-Country Study

Troilo

Zdziarski

Collins

2017

EBER

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“…First, we further add to the licensing literature by integrating the transaction cost and transactional value perspectives. Our analytical framework reconciles the monopoly rents (Aulakh et al, 2010;Fosfuri, 2006) and hostage (Somaya et al, 2010) views proposed in the existing literature by asserting that licensing exclusivity decision is a trade-off, as the licensor faces the dilemma of whether to grant exclusivity rights to technologically strong or weak licensees. The trade-off is reflected in the balance of lost opportunities due to adverse selection and the transaction costs due to moral hazards (Bergen, Dutta, & Walker, 1992).…”

Section: Introductionmentioning

confidence: 76%

“…As a consequence, firms are increasingly using inter-organizational licensing to enter foreign markets (Arora & Fosfuri, 2000;Aulakh, Jiang, & Pan, 2010;Contractor, 2001). Compared with other entry modes such as joint ventures and wholly owned subsidiaries, licensing requires lower resource commitment, yet provides an initial establishment in exploring a foreign market or assessing a potential partner in preparation for future entry with greater resource commitments (e.g., Anderson & Gatignon, 1986;Buckley & Casson, 1996;Hill, Hwang, & Kim, 1990).…”

Section: Introductionmentioning

confidence: 99%

Licensee technological potential and exclusive rights in international licensing: A multilevel model

Aulakh

Jiang

2013

J Int Bus Stud

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Granting of exclusive rights is an important consideration for firms using licensing as a mode of entry into foreign markets, as exclusive contracts reduce licensors' flexibility in a given market during the term of the agreement. By granting exclusivity to a licensee with greater technological potential, the exchange partners can increase the potential transactional value of the licensing agreement. At the same time, a licensee with strong technological potential will increase the threat of transactional hazards due to underinvestment and rent appropriation. In this paper, we develop and empirically test a model that evaluates the balancing of transactional value and transaction costs in exclusive licensing. In particular, we identify the conditions under which exclusive contracts are likely to be granted to foreign licensees with strong technological potential. Empirical results from a multilevel model, based on 375 international licensing agreements of US firms in high-technology industries during 1995-2008, show that licensees with a stronger technological potential are more likely to be granted exclusive rights in countries with strong intellectual property rights protection, and in industries with a high rate of technological change; but are less likely to be granted exclusive rights when there is a high degree of overlap between licensor and licensee products.

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“…Licensor and Licensee in making technology licenses will be tied up in the Licensing Agreement were agreed. Licensing Agreement contains provisions regarding the nature of rights granted to the licensee, the compensation structure, and the duration of the agreement [20].…”

Section: Advances In Economics Business and Management Research Volmentioning

confidence: 99%

Commercialization Type of Research Results in Technology Transfer: a Review of Determination Strategies

Kusumaputri¹,

Isnasari²

2016

Proceedings of the 2016 Global Conference on Business, Management and Entrepreneurship

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Abstract-Technology transfer is a downstream form of research and development result. Research result can be transferred in many kinds of commercialization type, including technology licensing and established a new company based on technology (Start-up Company). The success of technology transfer is determined by the selection of research result and commercialization types. Centre for Innovation as a division which has duties and function as the Technology Transfer Office (TTO) has already conducted these two types. This paper aims to analyze the various form of existing research result in LIPI and appropriate commercialization type. The method used in this paper is a qualitative descriptive, through information searching related to the topics from written source and interviews. In this paper, we found that research result could be licensed which is the result is a process and require further processing to apply it. Whereas research result to be transferred to the new company is the result in product form and can be implemented directly.

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International technology licensing: Monopoly rents, transaction costs and exclusive rights

Cited by 44 publications

References 59 publications

Competitiveness, Technology Licensing, and Ease of Paying Taxes: A 30-Country Study

Competitiveness, Technology Licensing, and Ease of Paying Taxes: A 30-Country Study

Licensee technological potential and exclusive rights in international licensing: A multilevel model

Commercialization Type of Research Results in Technology Transfer: a Review of Determination Strategies

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