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Licensing of sequential innovations

Kao, Tina


This paper uses a strategic licensing framework to study firms licensing behaviour when there are two generations of technology in the market. The innovations are sequential with the second invention built on the first one. We analyse two different licensing schemes: fixed fee payment and royalty payment. The results indicate that the optimal licensing strategy depends on the market size and magnitudes of the two innovations. When two inventors use the same licensing scheme, for most parameter...[Show more]

CollectionsANU Research Publications
Date published: 2004
Type: Working/Technical Paper


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