RT Journal Article
T1 Why some product innovations are licensed and others are not?
A1 Antelo Suárez, Manel
A1 Bru Martínez, Lluis
K1 Product innovation
K1 Licensing
K1 Per-unit and ad-valorem royalties
K1 Market leader and market follower
K1 Welfare
AB We study in a Stackelberg industry the licensing of a product that embodies an innovation (quality-improving product) whose owner may be the firm that plays as a leader or a follower in setting output in the the product market. We find that the innovation is transferred (and social welfare is reduced) if its owner is the market-leader firm. However, if the innovation is in the hands of the market-follower firm, it is not licensed, even though licensing would be welfare enhancing. Thus, subsidizing R&D with the mandatory licensing of the resulting innovation may be a socially desirable policy
PB Elsevier
SN 1090-9443
YR 2023
FD 2023
LK http://hdl.handle.net/10347/30320
UL http://hdl.handle.net/10347/30320
LA eng
NO Research in Economics 77 (2023). https://doi.org/10.1016/j.rie.2023.02.001
NO Financial aid from the Xunta de Galicia (Grant Consolidación e Estruturación – 2019 GRC GI-2060) and from the Spanish Ministry of Science and Innovation (Grant ECO2017-86305-C4-1-R) is acknowledged
DS Minerva
RD 24 abr 2026