• East Asian Journal of Business Economics (EAJBE)
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• v.6 no.4
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• pp.47-57
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• 2018

Purpose - This paper aims to analyze the determinants of licensing behaviors of manufacturing firms empirically in non-advanced exporting countries. Research design and methodology - We try to approach licensing behavior from the perspective of innovation strategy and open innovation, and deal with two activities composing licensing, i.e. licensing-in and licensing-out using the result of Korean Innovation Survey Results - Firstly, Organizational characteristic factors, particularly the size and size related factors influence the firm behavior of licensing-out, but not in case of licensing-in. Secondly, innovation strategy influences the firm behavior of licensing-in, but not in case of licensing-out. Lastly, the determinants of licensing-in and that of licensing-out are different. Conclusions - In general, firms doing licensing-out have many complementary assets and orientation for global markets. Meanwhile, firms doing licensing-in are innovative firms utilizing patent as an appropriation mechanism. Licensing-out have relevance with product market-related factors and licensing-in have more relevance with technology market-related factors

• Asia Marketing Journal
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• v.15 no.3
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• pp.79-95
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• 2013

New product innovation is a process of embodying new knowledge in a product and technology licensing is getting popular as a means to innovations and introduction of new product to the market in today's competitive global market environment. Incumbents often rely on technology licensing to access new product opportunities created by other firms. Prior research has examined various aspects of technology licensing agreements such as specific contract terms of licensing agreements, e.g., distribution of control rights, exclusivity of licensing agreements, cross-licensing, and the scope of licensing agreements. This study aims to provide answers to an important, but under-researched question: why do some incumbents initiate more licensing agreement for exploratory learning while others do it for exploitative learning along the innovation process? We attempt to extend our knowledge of licensing agreements from an organizational learning perspective. Technology licensing as a specific form of interfirm linkages can be initiated with different learning objectives along the process of new product innovation. The exploratory stages of the innovation process such as discovery or research stages involve extensive searches to create new knowledge or capabilities, whereas the exploitative stages of the innovation process such as application or test stages near the commercialization are more focused on developing specific applications or improving their efficiency or reliability. Thus, different stages of the innovation process generate different types of learning and the resulting technological resources. We examine when incumbents as licensees initiate more licensing agreements for exploratory learning objectives and when more for exploitative learning objectives, focusing on two factors that may influence a firm's formation of exploratory and exploitative licensing agreements: 1) its past radical and incremental innovation experience and 2) its internal investments in R&D and marketing. We develop and test our hypotheses regarding the relationship between a firm's radical and incremental new product experience, R&D investment intensity and marketing investment intensity, and the likelihood of engaging in exploratory and exploitive licensing agreements. Using data collected from various secondary sources (Recap database, Compustat database, and FDA website), we analyzed technology licensing agreements initiated in the biotechnology and pharmaceutical industries from 1988 to 2011. The results of this study show that incumbents initiate exploratory rather than exploitative licensing agreements when they have more radical innovation experience and when they invest in R&D activities more intensively; in contrast, they initiate exploitative rather than exploratory licensing agreements when they have more incremental innovation experience and when they invest in marketing activities more intensively. The findings of this study contribute to the licensing and interfirm cooperation studies. First, this study lays a foundation to understand the organizational learning aspect of technology licensing agreements. Second, this study sheds lights on how a firm's internal investments in R&D and marketing are linked to its tendency to initiate licensing agreements along the innovation process. Finally, the findings of this study provide important insight to managers regarding which technologies to gain via licensing agreements. This study suggests that firms need to consider their internal investments in R&D and marketing as well as their past innovation experiences when they initiate licensing agreements along the process of new product innovation.

• Knowledge Management Research
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• v.11 no.1
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• pp.37-50
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• 2010

Bioharmaceutical technologies have consistently been areas in which large licensing agreements have been negotiated. However, there are very limited informations in the open literature on how its running royalty rates are determined and no specific methods are yet provided. The purpose of this study is to suggest an appropriate method for the estimation of running royalty of bioharmaceutical technology in licensing agreements. Here distribution of risk-adjusted operating margins are obtained by simulation using statistics of success rates in the stage of clinical trials and profit margins. Three factors based on technology, business and license legal terms are considered and combined as licensing competitiveness level. Finally, reasonable running royalty is estimated by combining simulated distribution and licensing competitiveness level. This suggested method is expected to practically useful for licensor to establish an appropriate running royalty rate for licensing.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.8 no.6
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• pp.2043-2055
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• 2014

This paper empirically investigates the effects of technology licensing on the licensee firm's performance with the help of a unique data set of observed licensing transactions in Information and Communication Technology (ICT) industry. We examine how intensity of licensing participation as a licensee affects the firm's performance. This study also analyzes how relationship between the licensor and the licensee in a deal along with characteristics of participants and their industry influences the performance of the licensee firm. The findings suggest that frequent participation in technology licensing increase licensee firm's sales growth. Also, transaction cost considerations and technology spillovers are important explanatory factors that influence licensee firms' performance in licensing.

• Journal of Technology Innovation
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• v.11 no.2
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• pp.27-39
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• 2003

This study empirically examines the relationship between technology licensing and licetnsee firms' profitability. A significant positive effect of licensing on profitability is generally demonstrated in both the short run and the long run. Further, the magnitude of positive effect is bigger in the long run than that in the short run. The paper suggest that, for firms, aggressive management strategy of collaborating with technology holders through licensing agreements is beneficial. It also argues that transferred technology requires time to be implemented, modified and mastered better by companies.

• Proceedings of the Korean Society for Language and Information Conference
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• 2007.11a
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• pp.115-125
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• 2007

The purpose of this paper is to propose a new type of NPI licensing context through French subjunctive and ne expletif. The distribution of NPIs on previous studies does not exactly correspond to negative function types. French subjunctive and ne expletif are good guidelines for reclassifying NPI licensing context. My classification is by a hierarchy of strength in negative force: overtly negative proposition > negative entailment > negative implicature. A new type of NPI licensing context is: (i) I-domain for negative implicature (ⅱ) E-domain for negative entailment and (ⅲ) overt negation.

• Journal of Technology Innovation
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• v.10 no.2
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• pp.19-44
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• 2002

All over the world, the attention on the exploitation of public research, which is mainly implemented by technology transfer, has increased in recent years. Licensing, which is one of representative mechanisms for public-to-private technology transfer, is accompanied by the frequent conflicts in negotiating a license payment between public research institutes (PRIs) and private firms. In spite of the body of literature on technology transfer in a licensing context, it focuses on contracts between private firms. Even the existing literature, which addresses public-to-private technology transfer through licensing, to our knowledge, has not yet formalized an established licensing model. This paper develops a mathematical model of public-to-private licensing, not hitherto tried by academics. The model addresses important issues to be applied comprehensively in licensing practice, such as determining a royalty rate, balancing between an initial payment and a running royalty, designing an inventor's incentive system, and setting a minimum payment as a screening criterion. The paper also provides reasonable management implications to controversial issues in technology transfer from PRIs to private firms, partly employing the comparative analysis between current stylized licensing practice and the one suggested in the model. We hope that study contributes to providing the foundation on which the theory on public-to-private licensing would extend to an in-depth level.

• Journal of Korea Technology Innovation Society
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• v.14 no.2
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• pp.260-278
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• 2011

Along with the launch of National R&D Program in 1982, National R&D licensing policy began to operate in order to expand and promote the outputs of R&D. Even though various studies attempted to draw plans to improve the National R&D licensing policy, most of their focus was limited to the collection and allocation structure of royalty. Thus, with the aim of approaching National R&D licensing policy in a whole cyclic perspective [from collection allocation to execution' post control], this study incorporates interviews with specialists and officials in charge of technology licensing fee, Industry-University-Institute surveys as well as literature review. Through this endeavor, suggestions are made in the aspects of (1) National R&D licensing policy reformation, (2) Technology licensing fee collection and allocation structure refinement, (3)Post control system establishment.

• Management Science and Financial Engineering
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• v.10 no.1
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• pp.43-52
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• 2004

This paper empirically investigates potential factors that might affect firms' incentives to license out technology. The analysis is done with the help of a panel data set of observed licensing transactions involving U.S. public companies in high-technology industries. The important explanatory factors relate to the firm characteristics such as the company's stock of technological knowledge (patent stock). prior involvement in technology licensing. the company size, R&D intensity and capital expenditure. The results suggest that there seems to be significant inter-sectoral differences as well as similarities in determinants of the propensity to transfer technology through licensing agreements.

• Electronics and Telecommunications Trends
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• v.38 no.6
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• pp.84-94
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• 2023

Open source has many advantages and is widely used in various fields. However, legal disputes regarding copyright and licensing of datasets and learning models have recently arisen in artificial intelligence developments. We examine how datasets affect artificial intelligence learning and services from the perspective of copyrighting and licensing when datasets are used for training models. The licensing conditions of datasets can lead to copyright infringement and license violation, thus determining the scope of disclosure and commercialization of the trained model. In addition, we examine related legal issues.