Technology Licensing Research Articles

Technological integration and energy‐efficiency innovation: The mediating effect of energy management evidence from Egypt

AbstractThis study examines the mediating effect of energy management on corporate technological integration and energy‐efficiency innovation nexus. Using data from 1345 Egyptian Structural Equation Modeling (SEM) from 2018 to 2020, we employed Baron and Kenny's approach, SEM, and bootstrapping tests for robustness. Our findings reveal the following: (1) Energy management, at various managerial levels partially, mediates the communication technologies' effect on energy‐efficiency innovation. (2) Websites, as an information and communication technology tool, help to improve the stakeholders' reciprocity and enhance the corporate reputation. (3) Foreign technological licensing, as a source of external knowledge acquisition, shows a nonsignificant effect on innovation, indicating that imported technologies do not enhance knowledge sharing or green innovation. These insights underscore the importance of websites in driving energy management, which subsequently boosts energy‐efficiency innovation. Thus, it encourages Egyptian small and medium enterprises to leverage technological tools for environmental aims.

Mitigating yield uncertainty from the perspectives of contract manufacturing and technology licensing

In the low-carbon environment, green manufacturing by manufacturers often requires upstream to provide precision components. However, the lack of production experience of high-tech upstream leads to yield uncertainty. To explore the impact of yield uncertainty on green supply chain operations and analyze its solution, we propose a contract manufacturing mode with technology licensing and further consider pricing licensing or production licensing. The Stackelberg game is employed to construct these three models and a benchmark model without contract manufacturing. Moreover, we discuss the supplier’s mode preference by numerical analysis. Our findings reveal that the contract manufacturing mode with technology licensing mitigates the detrimental influence of yield uncertainty, boosting supplier profitability by 49.00% and manufacturer profitability by 61.76% when the expected yield rate is small or the expected yield rate is large with a small yield fluctuation. Furthermore, when both expected yield rate and profit-sharing ratio are low, increased yield fluctuation predominantly affects the downstream, whereas a win–win–win situation can be achieved through increased profit-sharing ratio. Additionally, compared with contract manufacturing mode with technology licensing, additional pricing licensing or production licensing augments supplier profitability by more than 10.56% in certain cases. Interestingly, improving production efficiency may not enhance the contract manufacturer profitability in both modes due to potential trade-offs with competition and the high cost. This paper contributes to the development of contract manufacturing policies, guiding suppliers and contract manufacturers towards achieving synergetic economic and environmental development. Future research could examine the applicability of the proposed contract manufacturing mode in various industries or identify additional factors affecting supplier profitability.

Technology Transfer and Imitation in a Cournot Oligopoly

AbstractI examine and compare patent licensing by fixed fee and unit royalty under Cournot competition. I consider licensing by an incumbent patent holder to one or two other competing firms that can obtain a patented technological improvement through technology transfer or imitation. Assuming that imitation is perfect, certain, instantaneous, and non-infringing, I analyze the effects of licensing on market structure, firms’ individual profits, and consumer surplus. This provides a theoretical framework that explains when technology licensing is superior to imitation for both firms and consumers, what is the optimal licensing choice for firms, and how imitation affects firms’ licensing behavior and competition in a highly concentrated industry. In particular, I show that licensing through a unit royalty is preferable to licensing through a fixed fee for a patent holder, while licensing through a fixed fee is at least as beneficial as licensing through a unit royalty for consumers. Moreover, the patent holder can use licensing to prevent imitation, but cannot use it selectively to affect competition, at least before the patent expires and when one of the competing firms can imitate. I contribute to the literature that considers the patent holder as a producer by showing how technology licensing can affect competition and improve consumer surplus in oligopolistic industries. This is important for policy makers to identify when technology licensing is used strategically to transfer surplus from consumers to producers.

Foreign Direct Investment and Technology Licensing in a Polluting Industry

We consider a firm’s incentive for foreign direct investment (FDI) and international technology licensing in a polluting industry. We explain the rationale and the welfare implications of complementarity between FDI and licensing, i.e., the firm’s strategy of “FDI and licensing” (FL), which is empirically relevant but ignored in the literature. When the environmental tax cannot be committed, the firm adopts the licensing strategy if the pollution intensity is not high, and the licensing strategy may create lower consumer surplus and welfare compared to both FDI and FL. However, if the pollution intensity is high, the firm undertakes FL, which provide higher consumer surplus and welfare compared to both licensing and FDI. When the government can commit to the environmental tax, the firm always prefers FL. The host-country welfare is higher but the consumer surplus and world welfare may be lower under the committed tax policy compared to the non-committed tax policy. These results hold under Cournot competition and Stackelberg competition. We further show that FL can be the equilibrium strategy of the foreign firm if there is fixed-fee licensing instead of a two-part tariff licensing, which is considered in the main analysis.

Assessing the infringement risk of patent portfolios using network analysis and IF-TOPSIS: A case of standard-essential patent portfolios in the ICT industry

With the intensification of technological innovation competition and the surge in the number of patents in modern society, companies' technology activities such as technology R&D, technology licensing and technology transfer now regularly involve large patent portfolios, as well as a rising risk of patent infringement. However, the existing patent infringement risk assessment methods are only designed for individual patents, which is not enough to meet the companies' practical need for assessing and managing the infringement risk of large patent portfolios. Therefore, this study proposes a combined approach using network analysis and intuitionistic fuzzy technique for order preference by similarity to ideal solution (IF-TOPSIS), which can assess and rank the infringement risk of a company's patent portfolio relative to each of its competitors' patent portfolios, thereby providing a scientific base for the company's management decisions on patent portfolios. In this approach, one-mode weighted patent proximity networks are constructed to extract topology information of patent portfolios, and the IF-TOPSIS method is combined to obtain and rank the risk results under a proper fuzzy framework. The case study uses patent portfolios containing a total of 6736 standard-essential patents (SEPs) in the information and communications technology (ICT) industry as test data, and verifies the practicality and validity of this intelligent approach. Managerial implications for technology managers and patent attorneys are elaborated.

High-order finite-element forward-modeling algorithm for the 3D borehole-to-surface electromagnetic method using octree meshes

The borehole-to-surface electromagnetic (BSEM) method complements surface and airborne electromagnetic (EM) methods. The borehole is typically filled with conductive media, which significantly impacts the responses. To accurately simulate the responses, the borehole needs to be modeled. However, the size of the borehole is very small compared with the entire computational domain, making it challenging to discretize the borehole accurately. We develop a high-accuracy 3D finite-element forward-modeling algorithm for the BSEM method using octree meshes. The basic idea of octree meshes is to locally refine the mesh by dividing the hexahedral element into eight smaller elements. This approach has the advantage of being able to accurately discretize small geometric features while using coarse meshes in other areas, thus reducing the computational cost. In addition, high-order basis functions are used to improve the accuracy of numerical solutions. We develop a 3D forward-modeling code for BSEM using the C++ programming language. We verify the correctness and accuracy of our implementation by comparing the numerical responses with analytical solutions. Furthermore, we determine the influence of the borehole on the EM responses, showing that the borehole will cause a decrease of several orders of magnitude in the responses when the borehole is filled with highly conductive media. We also use two 3D models to demonstrate the efficacy of octree meshes in the discretization of complex structures and to discuss the effectiveness and sensitivity of BSEM data in the exploration of mineral and oil-gas resources. The code is open source under the Massachusetts Institute of Technology license and can be used as an accurate modeling tool for BSEM responses, providing useful guidance for field exploration. The code is designed with a modular architecture, ensuring ease of maintenance and the ability to extend to other EM methods and serve as the foundation for 3D inversion.

Climate justice in the intersection between the CBDR&RC principle and intellectual property rights: a critical reading of international cooperation

ABSTRACT In this paper, I explore the intersection of climate justice and international cooperation, focussing on the compulsory licensing of climate-related technologies. I aim to contribute to a critical analysis of the role of intellectual property rights (IPRs) and global development in the twenty-first century, particularly within the context of a climate crisis, by: (i) explaining the evolution of the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR&RC) in the international governance on climate change, and (ii) analysing discussions around compulsory licensing of climate-related technologies within the international system of IPRs’ protection. For this, I use qualitative research methods, including critical discourse analysis and a preliminary literature review, to understand the interactions between delegations and the narratives constructed for international cooperation to address climate change. I then argue that a ‘climate justice’ framework would improve discussions of the development and transfer of climate-related technologies and bring transformative possibilities for the understanding of global development.

Green technological licensing strategies with fixed-fee among rival firms under emissions trading scheme

This paper considers no-licensing, unilateral licensing, and cross-licensing strategies among rival firms with different green technologies under emissions trading scheme. We mainly focus on the impact of green technological licensing strategies on firms’ operational management from a business perspective by considering different carbon quota allocations. It is shown that the green technological licensing strategy is always a preferred strategy in globally optimal sense when the technological gap and emission improvement are lower than some thresholds; if firms’ bargaining powers are within a certain range, the green technological licensing strategies can realize a Pareto improvement; the equilibrium decisions have a certain degree of robustness under random perturbation. To improve the performance of green technological licensing models, we introduce revenue-sharing contracts into the green technological licensing negotiation processes and show that, if the better-off firms agree to transfer a certain portion of their revenues, revenue-sharing contracts can increase the total profits of firms and are profitable for all parties. From an economic and environmental perspective, green technological licensing strategies can promote sustainable social development, while revenue-sharing contracts can significantly increase the incentive for rival firms to license green technologies.

Do firms with technological capabilities rush in? Evidence from the timing of licensing of Stanford inventions

This study investigates the influence of licensees’ technological capabilities on the timing of technology licensing in university technology commercialization. Drawing on the appropriation-collaboration tension from the literature on university technology licensing and intellectual property management, we propose that while the licensee’s technological capabilities drive early licensing by averting technological obsolescence, this effect diminishes significantly with an overlap in the technological domain of the focal invention due to expropriation concerns. Cox regression analysis of Stanford University’s invention dataset confirmed our hypotheses. This research reveals that technology licensing experiences delays with the most suitable licensees, namely, those with strong technological capabilities in the knowledge domain of the invention for licensing. This study contributes theoretical insights to the technology market literature and provides practical implications for licensing managers and industry partners in technology commercialization.

The role of asymmetric innovation’s sizes in technology licensing under partial vertical integration

In this paper, we compare the scenarios of exclusive licenses and cross-licenses under the existence of partial vertical integration. To do this, a successive duopoly model is proposed, with two owners and two firms competing in a differentiated product market. Each technology owner has a share in one of the competing firms, so that competition is also extended to the upstream R&D sector. We propose a novel analysis where differences in the size of their innovation process are allowed, extending the results in Sánchez et al. (2021). We find that the cross-licensing scenario is preferred when the size of the innovation is small; this occurs regardless of the participation in the competing companies and how many innovate. If the innovation is very large, the owners may be better off with exclusive licenses.

Absorptive capacity, product heterogeneity and technology licensing under different fee scenarios

AbstractSince a licensee does not always fully absorb technology in the process of technology licensing, based on the consideration of incomplete absorption, this paper establishes a game model consisting of a technology research and development firm and two licensee firms, to explore the most licensing strategies of the licensing firms as well as the optimal social welfare of the licensee under different fee scenarios. The results of the study show that (1) under the flat fee scenario, technology R&D enterprises will choose royalty licensing in most cases, but when the gap in the absorptive capacity of the licensed enterprise is small and the difference in the quality of the products between the two licensing parties is large, fixed‐fee licensing is a more preferable option;(2)in the differential fee scenario, technology R&D firms prefer differential fixed fee licenses;(3)when technological empowerment occurs, local social welfare is enhanced;(4)technology development firms prefer firms with high absorptive capacity, but also charge higher fees;(5)differential fees charged by technology R&D firms to authorized firms do not always lead to a relative decline in local social welfare; they can lead to a greater enhancement of social welfare within a certain interval, and the enhancement is even greater than the enhancement of social welfare brought about by uniform fees.

Licensing of a new technology by an outside and uninformed licensor

We examine the licensing decision of a non-producer innovator with a new technology that enables the manufacture of a saleable product. The technology is licensed and each user privately knows its innovation-related production cost, whereas the licensor only knows, with a certain probability, that this cost may be low (the user is efficient) or high (the user is inefficient). When a single licence is granted through separating contracts, only the contract intended for the inefficient user involves a per-unit royalty, but when two licences are granted through separating contracts, the contracts intended for the inefficient and efficient users both feature a per-unit royalty. However, screening is less likely as the number of licences increases, to the point that the licensor does not screen users when granting three licences. Additionally, whereas the diffusion of the innovation is socially insufficient under symmetric information, with asymmetric information it may be socially optimal. Finally, when licensing with contracts involving an ad-valorem royalty is also feasible the licensor finds it less attractive than licensing with a per-unit royalty.

Always on par? How small- and medium-sized enterprises manage coopetition strategies to innovate with large firms

This article explores how entrepreneurial small- and medium-sized enterprises (SMEs) manage coopetition strategies to innovate with large firms. While coopetition offers opportunities for innovation and growth, asymmetries between SMEs and large firms can provoke unilateral actions, opportunistic tactics, and knowledge theft which can undermine SME innovation power and jeopardise coopetition success. Based on a qualitative multiple-case study of 25 coopetitive innovation projects, each involving an SME and a large firm, we find that SMEs manage these risks by pursuing a synergistic mix of three distinct coopetition strategies: (1) Co-distribution, (2) Technology licensing, and (3) R&D co-development. In each strategy, SMEs navigate different coopetition intensities by dynamically combining the principles of separation, integration, co-management and co-ownership to achieve specific innovation outcomes. Our findings suggest that SMEs shift between cooperation- and competition-dominant strategies and employ a mix of management principles to offset asymmetrical risks and maximise their innovation benefits from coopetition with large firms.

Influence of resource compensation and complete information on green sustainability of semiconductor supply chains

The semiconductor industry provides technological support for a wide range of industries, including artificial intelligence, communications, consumer electronics, and medical instruments, but it also contributes to high resource consumption and pollution emissions, which are detrimental to global sustainable development. To promote the semiconductor industry's economic stability and sustainability in parallel with ecological and environmental protection, public awareness of sustainability is driving manufacturers to improve resource utilization and achieve green production of their products. To encourage manufacturers to contribute to global sustainability, governments are involved in supply chain decision-making based on resource and compensation policies. Using efficient resource utilization as an entry point, this study aims to explore whether manufacturers can effectively address the risk known as “strangle hold stuck neck” based on advanced resource utilization in their manufacturing processes, and the role of resource compensation versus full information in this context. The study shows that, in the presence of business competition or geopolitical factors, the disclosure of resource utilization levels to upstream technology suppliers by manufacturers with green production advantages increases their exposure to price increases. Whether or not upstream technology suppliers change their technology licensing decisions or have full information, resource efficiency policies can contribute to a stable product supply and more efficient resource utilization. Notably, there are limits to the setting of taxes and subsidies in resource compensation policies, and different scenarios exhibit different limiting functions for subsidies and taxes.

Technology Licensing under Successive Monopoly

Technology Licensing under Successive Monopoly

Management and marketing innovations: the role of management practices, international learning, and impacts on innovation performance

This paper investigates the role of management practices and international learning in management and marketing innovations. Additionally, it examines whether these innovations have impact on innovation performance. Based on data drawn from the World Bank Enterprise Survey for Turkish firms, the results of the empirical analyses indicate that while management practices and international learning from exporting and technology licensing contribute to management innovation, only management practices favor marketing innovation. Furthermore, the findings show that both types of innovation foster product innovation performance. This study aims to advance research on management and marketing innovations by considering management practices and international learning as antecedents, and by exploring innovation performance consequences of non‐technological innovations in an emerging economy.

Implementation Performances of Green Open Space Policy in Makassar City, Indonesia

Makassar as one of Indonesia's largest cities, has seen a variety of environmental repercussions as a result of its rapid urbanization and population increase. The management of green open space is part of the city government's objective for a sustainable city vision. The policy implementation was delayed, according to an earlier study, by issues of facilities, infrastructure, and budgeting. It is necessary to do additional studies using different methods to measure implementation performance more precisely. Within three months, primary and secondary data were collected for a mixed methodology approach that focused on the administrative and technological viability of a policy while employing effectiveness, efficiency, adequacy, and equality as research criteria. The percentage had increased to 3.52% during the last two years as a result of the budget increase, and there were now seven different types of GOS totaling 1,461 hectares located unevenly among 14 districts, where the distribution priority was not primarily based on population density as the main indicator. Performance throughout implementation was efficient and effective. Law, regulation, and guidelines that were thorough and clear, the involvement of the private sector, good coordination of implementer agencies, collaborative deliberation, the use of integrated licensing technology, and corporate social responsibility were noteworthy factors supporting performance. The performance in terms of adequacy and equality required additional improvement, necessitating more focus on low responsiveness, low budgeting, bad facilities, accuracy in prioritizing distribution, land conversion, and land price.

Welfare reducing licensing by an outside innovator

It is commonly believed that licensing of cost reducing technology increases welfare. We show that technology licensing by an outside innovator may reduce welfare when the technology is not useful for all final goods producers. Technology licensing reduces welfare if cost reduction by the licensed technology is small and the initial cost difference of the final goods producers is large. A higher intensity of competition, either due to lower product differentiation or due to Bertrand competition instead of Cournot competition, increases the possibility of welfare reducing licensing.

Technology Licensing Under Competition: Absorptive Capacity vs. Innovation Capability

Existing studies on technology licensing for quality-improving technology neglect the licensee's absorptive capacity or assume the complete absorption of technology for product quality. However, the licensee's absorptive capacity may significantly impact the benefit of technology licensing and has received extensive attention in practice and research. To address this gap, this study analyzes the optimal licensing strategy of vertically differentiated products by considering patentor's innovation capability and licensee's absorptive capacity, giving three types of licensing including fixed-fee licensing contact, per-unit royalty licensing, and two-part <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">ad valorem</i> licensing. We find that not only the patentor's innovation capability but also the licensee's absorptive capacity can significantly influence the optimal licensing strategy. The patentor may prefer per-unit royalty licensing and two-part <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">ad valorem</i> licensing to fixed-fee licensing. Moreover, technology licensing always benefits customers and society. Our work specifies the decision space for the patentor in evaluating the value of different licensing contracts and provides a new decision tool for choosing the optimal licensing strategy. We provide interesting management insights into understanding the optimal licensing strategy from the perspective of the patentor, customers, and society.

INNOVATION APPROACH IN VARIOUS COUNTRIES IN RESPONDING TO VOLATILITY-LITERATURE REVIEW STUDY

Innovation is one of the keys to the success of an organization. This literature review study aims to explore the supporting components of innovation and how the innovation approach is applied in various countries in the world. This study uses a literature review as a literature search material that has a large repository for academic studies, particularly in Elsevier (Scopus). The search for references was carried out by applying the inclusion criteria and exclusion criteria methods. Main search terms via search engines: (Innovative Work Behavior) and (Countries) and (Companies) and (Support) or (Impede), with searches from 2018 to 2020. This study uses a literary approach, with final results 12 The literature shows that there are at least 12 important components in an organization both internally and externally that are discussed in this research literature, including: management control systems, technology licenses, R&amp;D, company size, sectoral characteristics and access to finance, company resources and dynamic external environmental capabilities, number of executives with financial background, company age, company size, forward-looking search, service ecosystem. Through this literature study, business agencies should pay attention to these variables in developing innovations that are an important part of organizational survival. Future studies need to add a longer time span with a wider database.