Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 271-278 |
| Number of pages | 8 |
| Journal | Review of Industrial Organization |
| Volume | 12 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 1 Apr 1997 |
| Externally published | Yes |
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Keywords
- Licensing
- R and D race
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License to be more innovative. / LIN, Ping.
In: Review of Industrial Organization, Vol. 12, No. 2, 01.04.1997, p. 271-278.Research output: Journal Publications › Journal Article (refereed)
TY - JOUR
T1 - License to be more innovative
AU - LIN, Ping
PY - 1997/4/1
Y1 - 1997/4/1
N2 - A patent holder may choose to give up its current leading position through patent licensing in order to increase its incentive to innovate further and thus avoid falling behind its rivals in future RandD races. We show that because of this “catching-up” effect, licensing may occur even when it reduces current industry profits. The overall effect of licensing is to slow down the pace of innovation, as it reduces the licensee's incentive to conduct RandD.
AB - A patent holder may choose to give up its current leading position through patent licensing in order to increase its incentive to innovate further and thus avoid falling behind its rivals in future RandD races. We show that because of this “catching-up” effect, licensing may occur even when it reduces current industry profits. The overall effect of licensing is to slow down the pace of innovation, as it reduces the licensee's incentive to conduct RandD.
KW - Licensing
KW - R and D race
UR - http://commons.ln.edu.hk/sw_master/7179
U2 - 10.1023/A:1007710417985
DO - 10.1023/A:1007710417985
M3 - Journal Article (refereed)
VL - 12
SP - 271
EP - 278
JO - Review of Industrial Organization
JF - Review of Industrial Organization
SN - 0889-938X
IS - 2
ER -