I Never Promised You a Rose Garden: An Analysis of the Rent Dissipation and Revenue Effect in Technology Licensing

Solon Moreira, Goretti Cabaleiro

    Research output: Contribution to conferencePaperResearchpeer-review


    This paper analyzes the interplay between the rent dissipation and revenue effects by focusing on the degree to which the licensed technology represents a licensor’s core activity. We argue that if companies are anticipating the future loss
    in their market share (Rent Dissipation Effect) that licensing will imply, they would try to overcome or reduce this loss asking for a minimum guaranteed revenue at the time to sign the agreement (Revenue Effect). The analysis revealed
    that the decision to license valuable technologies are significantly associated with a lower growth on the licensor market share and that licensors try to counter balance this effect by requiring stronger remuneration clauses in the contracts.
    Original languageEnglish
    Publication dateJun 2013
    Number of pages33
    Publication statusPublished - Jun 2013
    EventThe DRUID Academy Conference 2013 - Hotel Comwell Rebild Bakker, Aalborg, Denmark
    Duration: 16 Jan 201318 Jan 2013
    Conference number: 34


    ConferenceThe DRUID Academy Conference 2013
    LocationHotel Comwell Rebild Bakker
    Internet address

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