Licensing and the Pricing of Technology

Abstract

It was only two decades ago that foreign licensing gained wide recognition and acceptance as a positive, third approach to foreign markets, an alternative approach that could be used instead of exporting or direct foreign investment. Official statistical data on dollar receipts from licensing transactions are published in the Survey of Current Business as part of the balance of payments accounts. These data, compiled in Table I, indicate that receipts of royalties, fees and services from abroad more than doubled over the course of the 13 years between 1970 and 1983.