Notice of Retraction: Technology licensing strategies considering network externalities and supplier's decision

Abstract

We explore how network externalities and supplier' decision affect the innovator's technology licensing strategy to the potential entrant. We find that a royalty license is the optimal strategy for the innovator except that the network externalities are very strong. In contrast to the no-licensing strategy, the royalty licensing strategy increases profits of the innovator and the total supply chain, but the impacts to the supplier' profits are contingent on the network externalities. Our results provide insights for licensing decisions under network externalities.