Understanding Licensing Behavior: A Rent Dissipation Lens on NIH, Product Market Competition and Sunk Costs

Goretti Cabaleiro, Solon Moreira, Toke Reichstein

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    Abstract

    The potential for rent dissipation has been argued to be the main cause of firms? licensing out behavior being stifled.However, this aspect has been scarcely studied empirically. We draw on rent dissipation arguments, and hypothesize that firms suffering from the not-invented-here (NIH) syndrome, firms in competitive product markets, and firms that have incurred substantial sunk cost are associated with lower rates of technology out-licensing. We also posit that sunk costs negatively moderate the relationship between competition in the licensor?s product market, and licensing rate. We test our hypotheses using a sample of 151 licensors involved in licensing contracts in the U.S. pharmaceutical industry during the period 1984-2004. We find broad support for our theoretical arguments.
    OriginalsprogEngelsk
    Publikationsdato2015
    Antal sider28
    StatusUdgivet - 2015
    BegivenhedThe DRUID Society Conference 2015: The Relevance of Innovation - LUISS Business School, Rome, Italien
    Varighed: 15 jun. 201517 jun. 2015
    Konferencens nummer: 37
    http://druid8.sit.aau.dk/druid/registrant/index/login/cid/16

    Konference

    KonferenceThe DRUID Society Conference 2015
    Nummer37
    LokationLUISS Business School
    Land/OmrådeItalien
    ByRome
    Periode15/06/201517/06/2015
    SponsorLUISS Guido Carli - Libera Università Internazionale degli Studi Sociali Guido Carli
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