Speaker: Professor Pedro de Faria (University of Groningen)
Hosted by: University of Liverpool Management School's Strategy, International Business and Entrepreneurship
Open to: Management School staff and students, with no sign up needed
Date: Wednesday 25 October 2023
Time: 13:00 - 14:30
Place: Management School - Seminar Room 1
Abstract
Rivals often own complementary technologies that have more value when matched together.
To unleash the value of combining such technologies, firms must develop the capabilities required to harness business stealing in exchanges with rivals.
We study the choice of contractual exchange mode (licensing agreements versus patent transfers) as a mechanism for mitigating business stealing.
Licensing contracts are better suited to eliminate business stealing through a delineation of uses but involve higher transaction costs.
Therefore, licensing should be preferred over patent transfers when the reductions in business stealing are sufficiently high to outweigh the higher transaction costs.
We develop and estimate a discrete choice model that captures such trade-off. We estimate the model on a dataset that tracks interactions in the market for technology materialized through different exchange modes between publicly listed companies in the US.
We find that the probability of choosing licensing (and cross-licensing) over patent transfers increases as product market overlap increases.
This effect is driven by the higher benefits of eliminating more intense business stealing. We discuss implications for Intellectual Property (IP) management and more generally for the design of technology markets.
Speaker
Professor de Faria is the Chair of the Department of Innovation Management and Strategy at the University of Groningen. He is a leading scholar in the field of innovation management, knowledge protection strategies, strategic human capital and international business and has published several articles in leading management journals such as Journal of International Business Studies, Journal of Management, Research Policy, among others. He also serves as an associate editor of the journal Industry and Innovation.
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