Licensing-In Fosters Rapid Invention!: The Effect of the Grant-Back Clause and Technological Unfamiliarity

Maria Isabella Leone, Toke Reichstein

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    Drawing on contractual economics and innovation management, licensing-in is hypothesized to accelerate licensees' invention process. Studying a matched dataset of licensees and non-licensees, licensees are shown to be faster at inventing, but the effect is negated if the license includes a grant-back clause, shifting incentives from licensee to licensor. Also, the effect is significantly reduced if the licensee is unfamiliar with the licensed technology. The effect of the grant-back clause is offset if the licensee is unfamiliar with the licensed technology, suggesting that the licensee retains the incentives to invent under these circumstances
    Drawing on contractual economics and innovation management, licensing-in is hypothesized to accelerate licensees' invention process. Studying a matched dataset of licensees and non-licensees, licensees are shown to be faster at inventing, but the effect is negated if the license includes a grant-back clause, shifting incentives from licensee to licensor. Also, the effect is significantly reduced if the licensee is unfamiliar with the licensed technology. The effect of the grant-back clause is offset if the licensee is unfamiliar with the licensed technology, suggesting that the licensee retains the incentives to invent under these circumstances
    LanguageEnglish
    JournalStrategic Management Journal
    Volume33
    Issue number8
    Pages965–985
    Number of pages21
    ISSN0143-2095
    DOIs
    StatePublished - 2012

    Keywords

    • Technology in-licensing
    • Invention Speed
    • Incentives
    • Grant-back
    • Technological Unfamiliarity

    Cite this

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    Licensing-In Fosters Rapid Invention! The Effect of the Grant-Back Clause and Technological Unfamiliarity. / Leone, Maria Isabella ; Reichstein, Toke.

    In: Strategic Management Journal, Vol. 33, No. 8, 2012, p. 965–985.

    Research output: Contribution to journalJournal articleResearchpeer-review

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