From Potential to Real Threat? The Impacts of Technology Attributes on Licensing Competition—Evidence from China during 2002–2013

Ming Li,Jason Li-Ying,Xiangdong Chen,Yuandi Wang

doi:10.3390/info12070260

Abstract

Prior studies have extensively discussed firms’ propensity of licensing under different levels of competition. This study clarifies the differences between potential technology competition (PTC) and actual licensing competition (ALC). We investigate the relationship between these two types of competition in the context of Chinese patent licensing landscape, using patent licensing data during 2002–2013. We find that the positive effect of PTC on ALC is contingent upon the nature of licensed patent, such as generality, complexity, and newness. Our findings help scholars and managers interested in licensing to understand and monitor the likelihood of licensing competition. Policy implications are presented at the end of this study.

Highlights

Technology licensing has become a strategically important means for firms to benefit from their research and development (R&D) and a popular form of transactions on the markets for technology [1,2,3]
This study aims at advancing our understanding about what makes potential technology competition (PTC) in a technology field turn into actual licensing competition (ALC) in the markets for technology
To date this work is the first that investigated the relationship between potential technology competition and actual licensing competition

Summary

Introduction

Technology licensing has become a strategically important means for firms to benefit from their research and development (R&D) and a popular form of transactions on the markets for technology [1,2,3]. Research on technology markets has given valuable insights on issues such as the factors that drive or hinder small and large firms’ participation in technology licensing [3,7,8], the way in which licensing transactions are organized [5,9], and the relevant supporting institutions [10]. Fosfuri [3] touched upon this issue, assuming a high correspondence between potential technology competition and actual licensing competition without addressing why and how they are related. Kani and Motohasi [10] measured the degree of technology competition by the crowdedness of a patent class to which a firm’s patent belongs without distinguishing the difference between competitions on technology market and product market

Objectives

Results

Conclusion