Exploring the Boomerang Effect

The Role of Core Technologies and Uncertainty in Explaining the Use of the Grant-Back Clause in Technology Licensing

Keld Laursen, M. Isabella Leone, Solon Moreira, Toke Reichstein

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    Licensing is one of the most commonly observed inter-firm contractual agreements.Drawing on the resource-based view of the firm and contract economics, we argue that the inclusion of a grant-back clause in licensing agreements emerges as a consequence of the licensor and licensee firms’ requirements to balance the need to protect their technological resources with the need to learn through internal and external processes. We argue that licensing
    agreements are increasingly likely to contain a grant-back clause (i) the closer the licensed technology is to the core of the licensor’s patent portfolio, and (ii) the higher the uncertainty of the licensed technology. In contrast, we conjecture decreasing likelihood of a grant-back clause, the closer the licensed technology is to the core of the licensee’s patent portfolio. Technological uncertainty is conjectured to positively moderate the results both when the licensed technology is part of the core technology of the licensee and the licensor. We test our hypotheses using a sample of 404 licensed technologies over the period 1984-2004. We employ a hierarchical nested decision model to account for the inclusion of a grant-back clause in a licensing contract nested in the decision about which technologies to license out. We find broad support for our theoretical
    arguments
    Original languageEnglish
    Publication date11 Feb 2013
    Number of pages37
    Publication statusPublished - 11 Feb 2013
    EventThe 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship: Competitiveness and Dynamics of Organizations, Technologies, Systems and Geography - ESADE Business School, Ramon Llull University, Barcelona, Spain
    Duration: 17 Jun 201319 Jun 2013
    Conference number: 35
    http://druid8.sit.aau.dk/registrant/index/login/cid/13

    Conference

    ConferenceThe 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship
    Number35
    LocationESADE Business School, Ramon Llull University
    CountrySpain
    CityBarcelona
    Period17/06/201319/06/2013
    OtherThe DRUID Society Conference 2013
    Internet address

    Cite this

    Laursen, K., Leone, M. I., Moreira, S., & Reichstein, T. (2013). Exploring the Boomerang Effect: The Role of Core Technologies and Uncertainty in Explaining the Use of the Grant-Back Clause in Technology Licensing. Paper presented at The 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship, Barcelona, Spain.
    Laursen, Keld ; Leone, M. Isabella ; Moreira, Solon ; Reichstein, Toke. / Exploring the Boomerang Effect : The Role of Core Technologies and Uncertainty in Explaining the Use of the Grant-Back Clause in Technology Licensing. Paper presented at The 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship, Barcelona, Spain.37 p.
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    abstract = "Licensing is one of the most commonly observed inter-firm contractual agreements.Drawing on the resource-based view of the firm and contract economics, we argue that the inclusion of a grant-back clause in licensing agreements emerges as a consequence of the licensor and licensee firms’ requirements to balance the need to protect their technological resources with the need to learn through internal and external processes. We argue that licensing agreements are increasingly likely to contain a grant-back clause (i) the closer the licensed technology is to the core of the licensor’s patent portfolio, and (ii) the higher the uncertainty of the licensed technology. In contrast, we conjecture decreasing likelihood of a grant-back clause, the closer the licensed technology is to the core of the licensee’s patent portfolio. Technological uncertainty is conjectured to positively moderate the results both when the licensed technology is part of the core technology of the licensee and the licensor. We test our hypotheses using a sample of 404 licensed technologies over the period 1984-2004. We employ a hierarchical nested decision model to account for the inclusion of a grant-back clause in a licensing contract nested in the decision about which technologies to license out. We find broad support for our theoretical arguments",
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    Exploring the Boomerang Effect : The Role of Core Technologies and Uncertainty in Explaining the Use of the Grant-Back Clause in Technology Licensing. / Laursen, Keld; Leone, M. Isabella; Moreira, Solon; Reichstein, Toke.

    2013. Paper presented at The 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship, Barcelona, Spain.

    Research output: Contribution to conferencePaperResearchpeer-review

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    AU - Laursen, Keld

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    AU - Moreira, Solon

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    N2 - Licensing is one of the most commonly observed inter-firm contractual agreements.Drawing on the resource-based view of the firm and contract economics, we argue that the inclusion of a grant-back clause in licensing agreements emerges as a consequence of the licensor and licensee firms’ requirements to balance the need to protect their technological resources with the need to learn through internal and external processes. We argue that licensing agreements are increasingly likely to contain a grant-back clause (i) the closer the licensed technology is to the core of the licensor’s patent portfolio, and (ii) the higher the uncertainty of the licensed technology. In contrast, we conjecture decreasing likelihood of a grant-back clause, the closer the licensed technology is to the core of the licensee’s patent portfolio. Technological uncertainty is conjectured to positively moderate the results both when the licensed technology is part of the core technology of the licensee and the licensor. We test our hypotheses using a sample of 404 licensed technologies over the period 1984-2004. We employ a hierarchical nested decision model to account for the inclusion of a grant-back clause in a licensing contract nested in the decision about which technologies to license out. We find broad support for our theoretical arguments

    AB - Licensing is one of the most commonly observed inter-firm contractual agreements.Drawing on the resource-based view of the firm and contract economics, we argue that the inclusion of a grant-back clause in licensing agreements emerges as a consequence of the licensor and licensee firms’ requirements to balance the need to protect their technological resources with the need to learn through internal and external processes. We argue that licensing agreements are increasingly likely to contain a grant-back clause (i) the closer the licensed technology is to the core of the licensor’s patent portfolio, and (ii) the higher the uncertainty of the licensed technology. In contrast, we conjecture decreasing likelihood of a grant-back clause, the closer the licensed technology is to the core of the licensee’s patent portfolio. Technological uncertainty is conjectured to positively moderate the results both when the licensed technology is part of the core technology of the licensee and the licensor. We test our hypotheses using a sample of 404 licensed technologies over the period 1984-2004. We employ a hierarchical nested decision model to account for the inclusion of a grant-back clause in a licensing contract nested in the decision about which technologies to license out. We find broad support for our theoretical arguments

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    Laursen K, Leone MI, Moreira S, Reichstein T. Exploring the Boomerang Effect: The Role of Core Technologies and Uncertainty in Explaining the Use of the Grant-Back Clause in Technology Licensing. 2013. Paper presented at The 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship, Barcelona, Spain.