Determinants of inter-firm technology licensing in the EU

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Abstract:

This article investigates the determinants of technology licensing, focusing on how country-specific characteristics affect technology holders’ incentives to sell their proprietary technologies through licensing alliances. An empirical examination of licensing is done using a unique panel data set of licensing transactions involving companies in the EU. The strength of Intellectual Property Rights (IPR) protection, the degree of economic freedom, the level of country risk, and the number of patent granted in the country are found to be important determinants of inter-firm technology licensing. In addition, firms with prior independent experience as a licensor and public companies tend to license technology more.

Keywords: EU; L20; M21; O32; O34; intellectual property rights; technology licensing; transaction cost

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036846.2011.610746

Affiliations: A.R. Sanchez, Jr. School of Business,Texas A&M International University, 5201 University Boulevard, LaredoTX 78041, USA

Publication date: February 1, 2013

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