Work

The Optimal Licensing Strategy of an Outside Patentee in Vertically-Related Markets

Year: 2013

Type: article

Abstract: We extend the model in Kamien and Tauman (1986) by considering vertically-related markets where the outside innovator transfers new technology by means of either a royalty or a fixed fee. Our conclusion is different with Kamien and Tauman (1986) and announces that the optimal licensing strategy for an outside innovator is a royalty contract with a non-exclusion licensing case. When the innovation size is small, the outside innovator’s licensing behavior causes low social welfare.

Source: International Journal of Economics and Finance

DOI: 10.5539/ijef.v5n3p102

Authors: Ming-Chung Chang, Jin-Li Hu, Chin-Hung Lin

Institutions: Kainan University, National Yang Ming Chiao Tung University

Language: English

Topic: Intellectual Property and Patents

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: hybrid

Funder: National Science Council