Explaining Observed Licensing Agreements: Toward a Broader Understanding of Technology Flows∗

We gratefully acknowledge the financial support of the National Science Foundation and the guidance provided by John E. Jankowski, Director of NSF's R&D Statistics Program. In addition, we thank the editors and an anonymous referee, William L. Balsdwin, David P. Leech, Nicholas Vonortas, Nancy A. Scott, Troy J. Scott, and Peggy Cheney for thoughts, comments, and assitance.

A lack of quantitative information on cross-firm licensing agreements constrains policy makers in their overall understanding of the innovation process and the innovative environment of firms. This paper develops a methodology for understanding the patterns of technology flows that result through licensing agreements from readily available patent data. In addition, hypotheses about firms that share technology through licensing are tested; in particular, we find that diversified firms have a higher probability of licensing their technology.

Keywords:

• Innovation And Invention: O31
• Intellectual Property Rights: O34

Notes

We gratefully acknowledge the financial support of the National Science Foundation and the guidance provided by John E. Jankowski, Director of NSF's R&D Statistics Program. In addition, we thank the editors and an anonymous referee, William L. Balsdwin, David P. Leech, Nicholas Vonortas, Nancy A. Scott, Troy J. Scott, and Peggy Cheney for thoughts, comments, and assitance.