Partner Selection in Technological Licensing Agreements: The Role of Technological Learning and Market Competition

Keld Laursen, Giulia Trombini

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    This paper investigates the matching of seller and buyer firms in the market for technology licensing. By combining organizational learning theory with the industrial organization approach, we propose a matching model in which technological similarities in terms of relatedness and familiarity work as attractors, and market competition and potential involuntary spillovers act as repellants. Firms seek potential licensing partners by trying to maximize technological synergies while attempting to minimize the competitive downsides. We hypothesize that when licensees engage in matches involving a partner that is technologically unrelated, ex ante familiarity with the licensors’ technology is required. We contend also that there is interdependence between technological learning and market competition: if partners are in the same product markets, the likelihood of technology license contractual partnerships decreases with partners’ technological relatedness. We use data on the formation of license partnerships in the global biopharmaceutical industry over the period 1994-2004 and find that, on the whole, there is empirical support for our theoretical predictions.
    This paper investigates the matching of seller and buyer firms in the market for technology licensing. By combining organizational learning theory with the industrial organization approach, we propose a matching model in which technological similarities in terms of relatedness and familiarity work as attractors, and market competition and potential involuntary spillovers act as repellants. Firms seek potential licensing partners by trying to maximize technological synergies while attempting to minimize the competitive downsides. We hypothesize that when licensees engage in matches involving a partner that is technologically unrelated, ex ante familiarity with the licensors’ technology is required. We contend also that there is interdependence between technological learning and market competition: if partners are in the same product markets, the likelihood of technology license contractual partnerships decreases with partners’ technological relatedness. We use data on the formation of license partnerships in the global biopharmaceutical industry over the period 1994-2004 and find that, on the whole, there is empirical support for our theoretical predictions.

    Conference

    ConferenceThe DRUID Society Conference 2014
    Number36
    LocationCopenhagen Business School
    CountryDenmark
    CityFrederiksberg
    Period16/06/201418/06/2014
    Internet address

    Bibliographical note

    CBS Library does not have access to the material

    Keywords

      Cite this

      Laursen, K., & Trombini, G. (2014). Partner Selection in Technological Licensing Agreements: The Role of Technological Learning and Market Competition. Paper presented at The DRUID Society Conference 2014, Frederiksberg, Denmark.
      Laursen, Keld ; Trombini, Giulia. / Partner Selection in Technological Licensing Agreements : The Role of Technological Learning and Market Competition. Paper presented at The DRUID Society Conference 2014, Frederiksberg, Denmark.40 p.
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      abstract = "This paper investigates the matching of seller and buyer firms in the market for technology licensing. By combining organizational learning theory with the industrial organization approach, we propose a matching model in which technological similarities in terms of relatedness and familiarity work as attractors, and market competition and potential involuntary spillovers act as repellants. Firms seek potential licensing partners by trying to maximize technological synergies while attempting to minimize the competitive downsides. We hypothesize that when licensees engage in matches involving a partner that is technologically unrelated, ex ante familiarity with the licensors’ technology is required. We contend also that there is interdependence between technological learning and market competition: if partners are in the same product markets, the likelihood of technology license contractual partnerships decreases with partners’ technological relatedness. We use data on the formation of license partnerships in the global biopharmaceutical industry over the period 1994-2004 and find that, on the whole, there is empirical support for our theoretical predictions.",
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      Laursen, K & Trombini, G 2014, 'Partner Selection in Technological Licensing Agreements: The Role of Technological Learning and Market Competition' Paper presented at, Frederiksberg, Denmark, 16/06/2014 - 18/06/2014, .

      Partner Selection in Technological Licensing Agreements : The Role of Technological Learning and Market Competition. / Laursen, Keld; Trombini, Giulia.

      2014. Paper presented at The DRUID Society Conference 2014, Frederiksberg, Denmark.

      Research output: Contribution to conferencePaperResearchpeer-review

      TY - CONF

      T1 - Partner Selection in Technological Licensing Agreements

      T2 - The Role of Technological Learning and Market Competition

      AU - Laursen,Keld

      AU - Trombini,Giulia

      N1 - CBS Library does not have access to the material

      PY - 2014

      Y1 - 2014

      N2 - This paper investigates the matching of seller and buyer firms in the market for technology licensing. By combining organizational learning theory with the industrial organization approach, we propose a matching model in which technological similarities in terms of relatedness and familiarity work as attractors, and market competition and potential involuntary spillovers act as repellants. Firms seek potential licensing partners by trying to maximize technological synergies while attempting to minimize the competitive downsides. We hypothesize that when licensees engage in matches involving a partner that is technologically unrelated, ex ante familiarity with the licensors’ technology is required. We contend also that there is interdependence between technological learning and market competition: if partners are in the same product markets, the likelihood of technology license contractual partnerships decreases with partners’ technological relatedness. We use data on the formation of license partnerships in the global biopharmaceutical industry over the period 1994-2004 and find that, on the whole, there is empirical support for our theoretical predictions.

      AB - This paper investigates the matching of seller and buyer firms in the market for technology licensing. By combining organizational learning theory with the industrial organization approach, we propose a matching model in which technological similarities in terms of relatedness and familiarity work as attractors, and market competition and potential involuntary spillovers act as repellants. Firms seek potential licensing partners by trying to maximize technological synergies while attempting to minimize the competitive downsides. We hypothesize that when licensees engage in matches involving a partner that is technologically unrelated, ex ante familiarity with the licensors’ technology is required. We contend also that there is interdependence between technological learning and market competition: if partners are in the same product markets, the likelihood of technology license contractual partnerships decreases with partners’ technological relatedness. We use data on the formation of license partnerships in the global biopharmaceutical industry over the period 1994-2004 and find that, on the whole, there is empirical support for our theoretical predictions.

      KW - Technology license partnering

      KW - Matching market

      KW - Technology familiarity

      KW - Technological relatedness

      KW - Market proximity

      M3 - Paper

      ER -

      Laursen K, Trombini G. Partner Selection in Technological Licensing Agreements: The Role of Technological Learning and Market Competition. 2014. Paper presented at The DRUID Society Conference 2014, Frederiksberg, Denmark.