• Journal of Korean Electronics
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• v.4 no.9
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• pp.35-38
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• 1984

• Proceedings of the Technology Innovation Conference
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• 2002.06a
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• pp.203-223
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• 2002

In Korea, Public Research Institutes(PRIs) are today faced with the challenges of creating values by transferring technologies in store within themselves to private commercial sector. Recently, It has been increasingly pointed out that PRIs have the poor capability to valuate prospective technologies of their own, and don't run the reasonable technology transfer mechanism in terms of establishing royalty rate and initial payment, designing remuneration to inventor, screening qualified licensee, and controlling the moral hazard. This paper develops an enhanced mathematical model of technology transfer from a PRI to a private industrial firm with including the inventor as an important player. The model is made up of the main part which derives the optimal royalty rate by maximizing the social welfare and sharing risk fairly between players and some sub-parts. The one sub-part is a principal-agent model which makes it possible to control the moral hazard of inventors, and the other part provides the criteria for screening appropriate licensees. Moreover, the moral hazard between inventor and licensee is addressed by introducing the cost reduction function of efforts exerted by them. The model is able to relate the optimal royalty rate to the parameters that represent the environments under which the concerned parties operate. Especially, the ratio of initial payment over the value of transferred technology is calculated from the binding relation with the royalty rate. The paper shows that the model suggested here is more enhanced by comparing with the existing technology transfer mechanism. Finally, the paper allows us to find better strategies for effective technology transfer and further develop more sophisticated technology transfer model.

• Journal of Technology Innovation
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• v.20 no.3
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• pp.181-198
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• 2012

Gyeonggi-Do launched the 'Achievement Royalty System(ARS)' in 2011 to promote the refund of excess profits from those firms to local system. The purpose of this study aims to analyze the effect of new royalty system in the public R&D program. From the analysis, commercially successful firms appear to have maintained the same level of innovation incentives even after introduction of ARS. It can be explained that they have given a priority in taking part in the next R&D projects as well as a benefit of systematic supports in technology commercialization and marketing. It is, therefore, fully expected that the policy makers can make ARS an additional funding source in the period of decreasing S&T budget, and have a better chance to gather evidences of successful policy practices to the firms. However, the institutional improvements are required to develop the ARS, which include the incentives of ARS payment and the lower total royalty expectation through the reduction of fix-payment ratio and the exemption of ARS.

• Journal of Digital Convergence
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• v.9 no.5
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• pp.31-43
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• 2011

Since the R&D Program for Small and Medium-sized Enterprises started in 1997 as a part of Small and Medium Business Administration, many companies succeeded to carry out the tasks and were charged royalty fees from the government aid program in return. However, some of them were unable to pay a royalty because of their poor financial positions. Failure to pay a royalty also led to adding administrative duties including debt collection and imposing a penalty of participation restriction for other R&D programs. To solve the problems incurred by a failure of royalty collection, a divided payment using a surety insurance was introduced in 2009. That is, the R&D program recipients who were charged royalties issue surety insurance policies and submit them to a collection agency with a plan of divided payment. In this study, we estimate the main benefits of introducing surety insurance for royalty collection. First, we analyze royalty collection results from recipients supported by the R&D program from 1997 to 2006. By doing so, we calculate the main parameters that will be used for estimating the 2011 collection results. Next, besides estimating the quantitative effect, which summarizes an increase of royalty collection via surety insurance, we also analyze various qualitative effects such as simplification of the collection process and expansion of opportunities for participation in R&D programs.

• 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.

• Proceedings of the Technology Innovation Conference
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• 2004.02a
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• pp.264-287
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• 2004

The minimum royalty should have two objectives. One is to guarantee the minimum license payment and the other is to screen the eligible licensee to prevent the licensee`s strategic behavior. In the licensing contract for public-to-private technology transfer, the latter plays more important role than the former in viewpoint of the successful technology transfer and commercialization. However, the minimum royalty falls into a dilemma to increasing the risk on the part of licensee in case of failure in technology transfer and commercialization. In our study, ex-post option contract will be suggested as a risk sharing mechanism to overcome above dilemma. The ex-post option contract means the contract which the licensee has the option whether to go or not at the time of manufacturing stage. To proof the usefulness of ex-post option contract, it is shown in the study that expected utility of a licensor and a licensee can increase with a certain constraint, which depends on degree of uncertainty and licensee`s risk aversion, after introducing the ex-post option contract. In spite of this constraint, the usefulness of ex-post option contract may be highly appreciated because its constraint is quite normal case in the real world.

• Culinary science and hospitality research
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• v.12 no.2 s.29
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• pp.18-38
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• 2006

We studied franchisees’ answers to the questionnaires to know their selective motives and criteria, their types and the reliability of a franchisor in the food-service industry. Then we showed the basic data about the selective criteria of a sound franchisor. The result of this study was as follows. First, we need a specialist and a department to present a financially sound franchisor. Second, we must determine the criteria of franchise fee, royalty and the other items on payment for the franchisor. Third, the alternative plan to trust the franchisor was needed for a large-scale franchisee.

• The Journal of Information Systems
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• v.13 no.2
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• pp.119-134
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• 2004

This research investigates the rising new role of mileage system as private e-money in a exploratory study. The key research questions are "How does mileage system evolve with expansion of e-business and what are the cases for real experiences in 'money-like' mileage and their implications?" This research focuses on the proposition that mileage points created in commercial transactions as a royalty program are observed to serve a new role as payment tool. In an attempt to identify factors that determine mileage system as private money, we employ three factors: confidence, transaction cost, and monetary freedom. Also, this research proposes a direction for further research and follow-up studies to establish legal and institutional issues and the relevant architecture, all of which are essential elements to make the mileage points global money with a certain trade ratio in the near future.

• Proceedings of the Korea Association of Information Systems Conference
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• 2004.11a
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• pp.444-453
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• 2004

This research investigates the rising new role of mileage system as private e-money in a exploratory study. The key research questions are 'How does mileage system evolve with expansion of e-business and what are the cases for real experiences in 'money-like' mileage and their implications?' This research focuses on the proposition that mileage points created in commercial transactions as a royalty program are observed to serve a new role as payment tool. In an attempt to identify factors that determine mileage system as private money, we employ three factors: confidence, transaction cost, and monetary freedom. Also, this research proposes a direction for further research and follow-up studies to establish legal and institutional issues and the relevant architecture, all of which are essential elements to make the mileage points global money with a certain trade ratio in the near future.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.3
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• pp.135-145
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• 2017

The purpose of this study is to present meaningful information and policy implications concerning the determinants of royalties to the government-funded research centers and agencies. These groups are responsible for policies encouraging technology transfer from the public sector to the private sector. To identify key determinants of royalties in technology transfer, this study conducted AHP survey analysis (Survey period: 01/10~31/10, 2016) of 85 companies which were participants of the R&D project "Next Generation BioGreen21" of R.D.A in the "N"center from 2011 to 2015. Research results show that the critical factors include: 1)Technical considerations for determining the profitability of the technologies, 2)The interest and willingness of the management group, 3)Necessity and urgency of technology transfer. These findings suggest three main policy implications. First, the government-funded research centers and agencies should develop technologies that help companies improve their commercialization as well as the profitability in the near future. Second, government-funded research centers and agencies should consider reducing the administrative burden of the royalty payment for private companies. Third, public R&D projects should reflect the proper research schedule for technology development on the basis of the R&D time span of companies which transfer technology.