Technology Licensing Research Articles

Understanding Technology Transfer Mechanisms: Assessing Impact of Technology Licensing on Performance of Nigerian Oil and Gas Industry

Understanding Technology Transfer Mechanisms: Assessing Impact of Technology Licensing on Performance of Nigerian Oil and Gas Industry

The Mode of Technology Licensing and Input Price Discrimination

The Mode of Technology Licensing and Input Price Discrimination

Manufacturer’s patent licensing strategies based on co-opetition

In the context of co-opetition (cooperation and competition), technological innovation endows manufacturers with new competitiveness and vitality. Through patent technology licensing, manufacturers can achieve technology upgrading and efficiency improvement. To study the patent licensing decisions of manufacturers based on co-opetition, this paper constructs a production patent licensing game model that comprises two manufacturers that cooperate in the upstream component market and compete in the downstream consumer market. We conduct a comparative analysis of the game equilibrium of three patent licensing scenarioscompetition (no licensing), unilateral licensing and cross-licensingand analyse the impact mechanism of key parameters, such as market share and cost advantage (cost burden). The research results are as follows. (1) When the product substitutability (competition intensity) is not very high and the market share of manufacturer 1 is relatively small or the product substitutability (competition intensity) is large and the cost advantage of both manufacturers 1 and 2 is moderate, Pareto improvement under cross-licensing scenario is better than that under unilateral licensing and competition scenarios. (2) The Pareto improvement in the unilateral licensing scenario is always better than that in the other two scenarios. (3) When the cost advantage of manufacturer 1 is small or large, the Pareto improvement in the competition scenario is better than that in the other two licensing scenarios. The paper also analyses consumer surplus in three licensing scenarios. The conclusions can provide a decision-making basis and support for manufacturers to select appropriate licensing strategies and government participation to guide enterprise technology upgrading under different situations.

The dark side of the boom: Dutch disease, competition with China, and technological upgrading in Colombian manufacturing

The natural resource boom of the 2000s spurred growth in income and consumption in many commodity-exporting nations. However, this paper brings together a previously unused combination of data sets from Colombia to document evidence of a downside – the currency appreciation associated with this boom led to a significant and persistent decline in R&D spending and in investment in technological upgrading by Colombian manufacturing firms. Our empirical strategy exploits differences in firms' sales across products and export destinations to create firm-specific measures of exposure to exchange rate shocks both abroad and at home. We link these new measurements of exchange rate exposure with Colombian micro data on R&D investment and technology upgrading. The key finding is that real exchange rate appreciation drives significant reductions in both firm-level R&D investment and a measure of technology upgrading that includes expenditure on capital goods, technology licensing, worker training, and other expenditures related to the adoption of new technology. Even after key commodity prices dropped significantly in the mid-2010s, inducing a substantial and long-lasting Colombian currency depreciation, investments in R&D and technology upgrading remained at subdued levels. Our estimated effects suggest that the resource boom and associated appreciation had a significant and persistent negative effect on technological development of Colombian manufacturing firm, and these conclusions remain even after careful attempts to simultaneously control for rising competition with Chinese manufacturers, which also had a negative effect on Colombian firms' technology investments, and the effects of trade liberalization at home and abroad. Similarities between Colombia and other commodity-exporters suggest that the effects documented in this paper may be widespread.

A Theoretical Analysis of Collusion Involving Technology Licensing Under Diseconomies of Scale

Abstract This study focuses on firms with cost-efficient technology that use licensing to influence product market behaviour, market prices and outputs and the resulting welfare effects. We show how licensing fees can be constructed that lead to identical collective industry outputs as under collusion while industry output is equal to or higher than that achieved under competition and sustained in equilibrium. Hence, consumers are either indifferent to firms’ collusion or better off when they do collude, whereas firms (producers) are always better off due to the improved cost efficiency of integrating the new production technology. This provides a theoretical foundation that explains why technology licensing is observed in highly concentrated industries characterised by significant diseconomies of scale relative to demand. We contribute to the literature by demonstrating how technology licensing involving collusion can reduce the dissipation effect and improve social welfare in oligopolistic industries. An important policy implication is that collusion involving technology licensing should not always be challenged by antitrust authorities, particularly when it does not transfer welfare from consumers to producers.

Do Aid for Trade Flows Affect Technology Licensing in Recipient Countries?

There is an abundant literature on the economic (including trade) effects of Aid for Trade (AfT) flows. However, little attention has been devoted to the effect of AfT flows on demand for technology licensing. The present article aims to fill this void in the literature by investigating the effect of AfT flows on technology licensing in developing countries. The analysis has used an unbalanced panel dataset of 77 countries over the period from 2002 to 2019 and mainly the two-step generalized method of moments estimator. It has been established that AfT flows foster technology licensing in countries that experience lower trade costs. In addition, the analysis has revealed that adverse environmental and external (economic and financial) shocks significantly hamper innovation, including the demand for technology licensing, and that AfT flows promote technology licensing in countries that experience lower magnitudes of such shocks. Finally, AfT flows foster technology licensing in countries that diversify export products.

BASF and NZRCC sign technology licence agreement for production of isononyl alcohol

BASF and NZRCC sign technology licence agreement for production of isononyl alcohol

528. Matched Retrospective Study, Comparing Molnupiravir to Nirmatrelvir-Ritonavir (Paxlovid) in the Treatment of Mild-Moderate COVID-19 in Immunocompromised Cancer Patients

Abstract Background Paxlovid has been shown to reduce the risk of progression (hospitalization/death) by 88% as compared to placebo, while molnupiravir reduced that risk by 31%. However, these two agents have not been compared in the same study patient population. We therefore conducted a matched controlled study, comparing molnupiravir to paxlovid in terms of safety (adverse events and drug-drug interactions) and efficacy (progression and rebound events) in the treatment of mild-moderate COVID-19 in immunocompromised cancer patients. Methods This is a single center, retrospective study that included 240 cancer patients diagnosed with COVID-19 in 2022. Patients who received molnupiravir were matched to those who received paxlovid on a 1:2 ratio, based on age group (18-64 years vs. ≥ 65) and type of cancer (lung cancer, hematologic malignancy, or other solid tumors). We collected patient demographics, comorbidities, malignancy history and treatment, vaccination status, as well as post-treatment progression and safety information. We used margins of 10% with 95% confidence intervals to determine the equivalence of outcomes. Results As shown in table 1, the two groups had comparable demographics, underlying malignancies, and most comorbidities, however smoking history, underlying CKD, and CAD were more common in the molnupiravir group. Similarly presenting symptoms were comparable, but cough, dyspnea and sore throat were more prevalent in the molnupiravir group. By multivariate analysis, 3 factors were independently associated with progression: hypertension, cough on presentation and failure to complete the 5-day course of antiviral therapy - P < 0.037. However, multivariate analysis failed to show any difference between the 2 groups in terms of progression to severe/disease and rebound events with equivalent margins within 10%. Patients who received paxlovid however were significantly more prone to drug-drug interactions/adverse events (28% vs. 0 - P < 0.0001). Comparing patients treated with molnuprivir versus those treated with paxlovid Conclusion In the treatment of mild to moderate COVID-19 in cancer patients, molnupiravir was comparable to paxlovid in preventing progression to severe disease/death and rebound events, with a superior safety profile. Disclosures Issam I. Raad, Distinguished Professor, Novel Anti-Infective Technologies, LLC: Technology License

2122. In Vitro Activity of Cefepime-Taniborbactam Against Clinically Significant Gram-Negative Bacteria Isolated from Patients with Cancer

Abstract Background Gram negative (GN) bacterial infections are on the rise in patients with cancer (PWC). There is an urgent need for new therapies to address the rise of infections caused by multidrug resistant (MDR) GN pathogens. Taniborbactam is a β-lactamase inhibitor in combination with cefepime may offer a potential treatment option for patients with serious GN bacterial infections. This study aimed to evaluate the in vitro activity of a novel combination of cefepime-taniborbactam and comparators against recent Gram-negative clinical isolates from PWC. Methods Recent GN clinical isolates from PWC were tested against cefepime-taniborbactam and comparators. Clinical and laboratory Standards Institute (CLSI) approved broth microdilution method was used. Appropriate ATCC controls were included. MIC90, and percent of susceptibility calculations were made using FDA breakpoints when available. We tested 100 GN isolates and further testing is ongoing. Results Cefepime-taniborbactam and comparators antibiotics susceptibility percentage (S: %), and MIC90 are shown in the table below. Cefepime-taniborbactam demonstrated highly potent activity against all of tested Enterobacterales including extended spectrum Beta-lactamase (ESBL), and carbapenem-resistant Enterobacterales (CRE) as well as against P. aeruginosa and Stenotrophomonas maltophilia. At a provisional breakpoint of 16/4 mg/L, cefepime-taniborbactam showed highest activity against all tested isolates when compared to cefepime and other comparators, including activity against ESBL, CRE, MDR P. aeruginosa and S. maltophilia. Comparative study between cefepime-taniborbactam and comparators for MIC90 (mg/L.) and Susceptibility (%) results against Gram-negative bacteria isolated from patients with cancer Conclusion Our data demonstrate that cefepime-taniborbactam has promising activity against clinically significant multidrug-resistant (MDR) GN bacterial pathogens isolated from PWC and it showed high activity compared to other commonly used broad spectrum antimicrobial agents. Disclosures Joel Rosenblatt, PhD, Novel Anti-Infective Technologies, LLC: Licensed Technology Issam I. Raad, Distinguished Professor, Novel Anti-Infective Technologies, LLC: Technology License

Development and validation of Loss of Coolant Accident (LOCA) simulation capability in the ENIGMA fuel performance code for zirconium-based cladding materials

Loss-of-coolant accident (LOCA) modelling forms a pivotal element in the licensing of light water reactor technologies. Within this context, the National Nuclear Laboratory has further developed its ENIGMA fuel performance code to accurately simulate fuel behaviour during limiting design-basis accidents. The enhanced ENIGMA code now incorporates models for high-temperature cladding creep, cladding oxidation and hydriding at elevated temperatures, cladding phase change, and cladding failure. A detailed examination of existing LOCA-capable models relevant to industrial-standard fuel performance codes was conducted, which led to the introduction of an industrial state-of-the-art capability within ENIGMA for modelling uranium dioxide fuel in various zirconium alloy cladding materials. The efficacy of the enhanced ENIGMA code was validated using data from the IFA-650.10 LOCA experiment carried out as part of the OECD Halden Reactor Project. ENIGMA’s predictions were compared with both the experimental data and predictions of other fuel performance codes from the International Atomic Energy Agency’s Fuel Modelling in Accident Conditions (FUMAC) coordinated research project. The comparison generally showed good agreement, highlighting the effectiveness of the improved ENIGMA code.

Lobbying for Tariff Protection, International Technology Licensing and Consumer Surplus

Abstract It is well known that the protectionist view for tariff protection can be justified if the tariff induced international technology licensing benefits the consumers. We show that this view may not hold true if the domestic firm lobbies for tariff protection. If lobbying determines tariff following the “tariff-function formation” approach, lobbying reduces consumer surplus by reducing the incentive for licensing. However, if lobbying determines tariff following the “political contribution” approach, lobbying increases the incentive for licensing but creates an ambiguous effect on consumer surplus. Hence, whether the protectionist view for tariff protection can be justified under international technology licensing depends on the way the tariff rates are determined.

A coordination model for closed-loop supply chain systems with a single manufacturer and retailer

This paper develops a coordination model for a closed-loop supply chain (CLSC) system consisting of a single manufacturer and retailer where market demand depends on the green technology level, retailer’s selling price, and promotional efforts. The manufacturer manufactures products from raw materials to finished products and adapts them for sale to meet key market demands. Used products from consumers will be returned to the retailer to be processed by remanufacturing under a technology license, and the rest will be returned to the manufacturer for remanufacturing, refurbishing, recycling, or waste disposal. The models are formulated mathematically and constructed under three scenarios – centralized, decentralized, and a Stackelberg game led by the manufacturer. Numerical examples are given to illustrate the results of the developed model. The result suggests that both types of investment can assist the closed-loop supply chain in enhancing its financial and environmental performance. It also suggests that lowering emissions levels through green technology might increase product selling prices, hence increasing sales volume.

Evaluation of the main technology valuation methods applied to intellectual property

The Technology Licensing Office (TLO) face several challenges, and one of them is related to the commercialization of technologies created by Scientific and Technological Institutions (STI), specifically regarding the valuation of technologies with market potential. This involves assigning a monetary value to the technologies to enable their negotiation for transfer to the productive sector. The objective of this study was to evaluate the main methods or valuation models of technology applied to intellectual property as a means of supporting the commercialization and technology transfer processes in TLOs. The research methodology used to conduct this study on valuation methods applicable to TLOs was a systematic literature review. As a result, a guide was developed, consisting of a few questions, which allows for a quick review to select, in a clear and objective manner, the most appropriate technology valuation method to be applied, taking into account the interests of the evaluator. In this way, the main technology valuation methods were identified, as well as the main advantages and disadvantages of each of the models addressed in this study.

The interaction between manufacturer-encroachment and information sharing in a closed-loop supply chain under technology licensing

This paper investigates the interaction between a retailer’s information sharing behaviour and a manufacturer’s encroachment strategies in a closed-loop supply chain in which the manufacturer licenses a third party to remanufacture. We apply the Stackelberg game to obtain the optimal pricing and production decisions and show that, information sharing always brings a profit increase to the manufacturer while a profit loss to the retailer. The retailer may be willing to share information in presence of manufacturer encroachment. We also show that, no matter whether the manufacturer remanufactures by himself or licenses the third party to remanufacture, the encroachment case is always profitable to the manufacturer due to the dual revenues from both the producing and marketing activities. In addition, whether the encroachment case is beneficial for the retailer is contingent on the encroachment cost. Specifically, when the encroachment cost is high enough, the encroachment case dominates the no-encroachment case because the manufacturer prefers to sell more products through the traditional retail channel rather than the direct selling channel. These results provide a new insight into information sharing and manufacturer-encroachment in a closed-loop supply chain.

International Technology Licensing, Intellectual Property Rights, and Tax Havens

Abstract This paper investigates the determinants of international technology licensing using data for 50 countries during 1996-2012. A multi-country model of innovation yields a dynamic structural gravity equation for royalty payments as a function of fundamentals, including imperfect intellectual property protection and differences in corporate taxation. The gravity equation is estimated with nonlinear methods. Model's fundamentals account for about 60% of the variation in royalty payments. A quantitative analysis sheds light on the impact of global taxation reforms on international technology licensing and innovation. The findings highlight the role of taxation in shaping cross-border technology flows and the consequences of profit-shifting.

Technology licensing contract design considering royalty transparency and demand information asymmetry with downstream co-opetition

This paper studies how technology suppliers can optimally design licensing contracts when there is incomplete information on the licensee’s demand potential for the product in a high-technology supply chain. A licensing contract typically contains an up-front payment and royalties on product sales. The licensor decides to license one technology to a licensee, which designs products based on the supplier’s technology and outsources the product manufacturing to a competitive downstream manufacturer. We apply principal-agent models to formulate the licensor’s contracting problem while considering the transparency of the licensing royalty and find that under demand information asymmetry, the optimal contract structure changes with the demand potential. More specifically, both the separating and pooling strategies can be the optimal strategies for the licensor under the observable contract case. Conversely, under the unobservable case, only the separating strategy is the optimal licensing strategy. And the licensor can always charge zero royalty to a high-type design firm regardless of the menu strategy or the single contract. Furthermore, we examine the effect of licensing royalty transparency on licensing decisions and firms’ profits and highlight the effect of downstream competition on the licensor’s profit. Our results show that the licensor can be better off in the observable contract case. By contrast, the design firm may be better off in the unobservable contract case. We provide a rationale for the licensing contract design under demand information asymmetry and further shed light on the choice between public and secret licensing terms.

The Failure of a Pure Patent Market

AbstractThis paper presents an analysis of the movement to make patents a new asset class, and its relative failure. Our thesis is that this creation is largely dependent on the construction of a market devoted to transactions in patents, and not just in technology licenses, and on the emergence of new intellectual property intermediaries akin to finance, whose activity must nevertheless be regulated. Our analysis is based on the various patent valuation conventions that underpin its institutionalization and the variety of its uses.

University-Industry Technology Transfer and Coproduction: A Case Study

Universities can promote entrepreneurship and innovation both by training professionals and by offering knowledge resulting from their research. Traditionally, industrial development has benefited from technology transfer (TT) from universities. Although the TT is very known and used, co-ownership and economic exploitation after a TT process remain a challenge to formal University-Industry agreements. In this study we discuss the notion of university-industry coproduction as a means to address formal agreement after TT. The case study is a Brazilian national Program, called CEURS - “Training and Studies for Urban and Regional Sustainability”. The main goal of CEURS is to provide practical training to individuals and teams on sustainability matters, focused on how to fulfill the UN's SDG 2030 Agenda locally (i.e., how to empower projects that are already at the community level so that they can become city programs). To do so, CEURS project was led by an academic network, sponsored by national government agencies. The project was developed at the Federal University of Santa Catarina (UFSC) by academics and students of the Graduate Program in Engineering and Knowledge Management, from the research group on Co-production in Digital Commons, in Brazil. CEURS team has developed CEURS Platform, a digital education platform, currently in the process of being publicly transferred to be augmented and operated at a national level. In this article, we analyze the institutional technology transfer agreements available to CEURS regarding the need to meet project demands for technology licensing, technology transfer, open innovation, and joint patents. We offer a critical analysis of a current regulatory process in technology transfer in an academic project that combines education, development, and social demand fulfillment. We conclude that a technology transfer licensing agreement can include principles that may fulfill CEURS project needs for nationalization through university-industry co-production. This study contributes to academics, innovation offices, policymakers, and university managers in formulating diligent and fast processes and strategies through technology transfers.

A Technology Licensing Model with Endogenous Timing

A Technology Licensing Model with Endogenous Timing

Designing a reverse supply chain network with quality control for returned products: Strategies to mitigate free-riding effect and ensure compliance with technology licensing requirements

For agility and cost-effectiveness, remanufacturing was highlighted as a solution to a capacity shortage for ventilators during the Covid-19 pandemic. In post-pandemic times, recycling was introduced as a solution to raw material shortcomings. However, it is recognized that implementing these reverse logistics activities creates operational challenges, including quality control of returned ventilators and product information leakage of product information in the process of passing technical information from the original equipment manufacturer (OEM)s to the reverse logistic service provider. The proposed reverse supply chain network model includes competing collection centers, third party remanufacturers (remanufactures), and recyclers investigating the case of ventilator products in three pandemic scenarios: pre-pandemic, during the pandemic, and post-pandemic. The minimum acceptable quality for remanufacturing is determined. The model is then extended with technology acquisition settings to allow remanufacturers to receive OEM licenses for accessing technical needs. The possible leakage of technical information is then considered, along with incentivizing and penalizing strategies. We found that the penalizing strategy improves the technology acquisition level at the cost of reducing the overall profit, while the incentivizing strategy can maintain the profittextcolorblacks but does not markedly improve the technology acquisition level remarkably.