Payment Schemes in Technology Licensing Agreements: A Transaction Cost Approach +
TLDR
In this paper, the authors provide a theoretical framework and an empirical assessment of payment schemes implemented in technology licensing agreements and highlight the need to include the impact of the institutional environment in the analysis of contract ual choices as a factor that greatly influences the level of ex post enforcement costs.Abstract:
This article provides a theoretical framework and an empirical assessment of payment schemes implemented in technology licensing agreements. Using a new source of data (a French governmental database designed to observe international technology transfers) we show that results obtained by previous studies focusing on incentive constraints are no longer valid when crucial ex post enforcement problems are taken into account. The choice of royalties vs. lump sum payments depends upon the quality of the protection provided to the licensor by the institutional environment. These results highlight the need to include the impact of the institutional environment in the analysis of contract ual choices as a factor that greatly influences the level of ex post enforcement costs.read more
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Book ChapterDOI
Chapter 15 – The Market for Technology
Ashish Arora,Alfonso Gambardella +1 more
TL;DR: A review of the literature on the "market for technology" can be found in this paper, where a key contribution has been that the decision of firms to license depends on whether the revenues from licensing are higher than the rent-dissipation effect produced by increased competition in the licensor's product markets.
Journal ArticleDOI
Controlling contractual exchange risks in R&D interfirm cooperation: an empirical study
Roland Helm,Martin Kloyer +1 more
TL;DR: In this article, the authors analyse how an option on later negotiation of an additional continuous innovation return sharing which is based on contractual hostages can lower the perceived exchange risks, and examine how effectively these hostages lower these perceived risks.
Journal ArticleDOI
Institutions and contracts : franchising
TL;DR: In this paper, a new dataset of franchise networks in nine countries in order to assess whether and to what extent do institutions influence the practice of franchising is presented. But the effect of legal tradition and formalism seems negligible once these parameters are taken in.
Posted Content
The Governance of Contracts: Empirical Evidence on Technology Licensing Agreements
TL;DR: In this paper, the authors assess the influences of transaction attributes, institutional frameworks, and strategic considerations on the creation of software licensing agreements, and show that contractual clauses for governance are crafted independently, leading to a discussion of complementarities between contractual components.
References
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Book
Institutions, Institutional Change and Economic Performance
TL;DR: Douglass C. North as discussed by the authors developed an analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies, both at a given time and over time.
Posted Content
Institutions, Institutional Change, and Economic Performance
Douglass C. North,John Alt +1 more
TL;DR: In this article, the authors examine the role that institutions, defined as the humanly devised constraints that shape human interaction, play in economic performance and how those institutions change and how a model of dynamic institutions explains the differential performance of economies through time.
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The Economic Institutions of Capitalism
TL;DR: The Economic Institutions of Capitalism as mentioned in this paper is a seminal work in the field of economic institutions of capitalism. Journal of Economic Issues: Vol. 21, No. 1, pp. 528-530.
Book ChapterDOI
Economic Welfare and the Allocation of Resources for Invention
TL;DR: In this article, the determination of optimal resource allocation for invention will depend on the technological characteristics of the invention process and the nature of the market for knowledge, which is interpreted broadly as the production of knowledge.
Journal ArticleDOI
Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy
TL;DR: In this article, the authors explain why innovating firms often fail to obtain significant economic returns from an innovation, while customers, imitators and other industry participants be- nefit.