Abstract:This paper examines licensing of interim R&D knowledge among firms engaged in a winner- takes-all R&D contest to come up with particular commercially profitable innovation. Interim knowledge represent...This paper examines licensing of interim R&D knowledge among firms engaged in a winner- takes-all R&D contest to come up with particular commercially profitable innovation. Interim knowledge represents basic research knowledge which the firms already posses and it enhances the chances of the licensees to win the contest. The paper shows that there is a wide range of parameters for which the leading firm in the contest will prefer to either license or sell its knowledge to one of its rivals or to both. Although licensing erodes its technological lead, it also allows the leading firm to play the rival firms against one another by charging them fees that reflect not only the value for getting a license but also the value of preventing the other firm from getting an exclusive license.Read More
Publication Year: 2007
Publication Date: 2007-01-01
Language: en
Type: article
Access and Citation
Cited By Count: 7
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