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

Goretti Cabaleiro, Solon Moreira, Toke Reichstein

    Publikation: Bidrag til konferencePaperForskningpeer review

    Resumé

    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.
    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.

    Konference

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

    Citer dette

    Cabaleiro, G., Moreira, S., & Reichstein, T. (2015). Understanding Licensing Behavior: A Rent Dissipation Lens on NIH, Product Market Competition and Sunk Costs. Afhandling præsenteret på The DRUID Society Conference 2015, Rome, Italien.
    Cabaleiro, Goretti ; Moreira, Solon ; Reichstein, Toke. / Understanding Licensing Behavior : A Rent Dissipation Lens on NIH, Product Market Competition and Sunk Costs. Afhandling præsenteret på The DRUID Society Conference 2015, Rome, Italien.28 s.
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    Cabaleiro, G, Moreira, S & Reichstein, T 2015, 'Understanding Licensing Behavior: A Rent Dissipation Lens on NIH, Product Market Competition and Sunk Costs' Paper fremlagt ved The DRUID Society Conference 2015, Rome, Italien, 15/06/2015 - 17/06/2015, .

    Understanding Licensing Behavior : A Rent Dissipation Lens on NIH, Product Market Competition and Sunk Costs. / Cabaleiro, Goretti; Moreira, Solon; Reichstein, Toke.

    2015. Afhandling præsenteret på The DRUID Society Conference 2015, Rome, Italien.

    Publikation: Bidrag til konferencePaperForskningpeer review

    TY - CONF

    T1 - Understanding Licensing Behavior

    T2 - A Rent Dissipation Lens on NIH, Product Market Competition and Sunk Costs

    AU - Cabaleiro,Goretti

    AU - Moreira,Solon

    AU - Reichstein,Toke

    PY - 2015

    Y1 - 2015

    N2 - 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.

    AB - 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.

    M3 - Paper

    ER -

    Cabaleiro G, Moreira S, Reichstein T. Understanding Licensing Behavior: A Rent Dissipation Lens on NIH, Product Market Competition and Sunk Costs. 2015. Afhandling præsenteret på The DRUID Society Conference 2015, Rome, Italien.