Premium
Which Firms Buy Licenses? Market Positions and License Expenditures*
Author(s) -
Czarnitzki Dirk,
Kraft Kornelius
Publication year - 2010
Publication title -
scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/j.1467-9442.2010.01610.x
Subject(s) - license , order (exchange) , german , economics , position (finance) , aside , industrial organization , microeconomics , finance , law , art , literature , archaeology , political science , history
This paper presents the empirical results of a comparison of technology licensing expenditures of German companies in order to test implications of the Gilbert and Newbery (1982) model. Aside from standard control variables, the motives for innovation expenditures are also taken into account. We differentiate between firms intending to secure their present position in the market (incumbents) and those intending to enter a new market (challengers). In line with the prediction of the Gilbert and Newbery model, we find that incumbents show higher expenditures for technology licenses than potential entrants.