License Expenditures of Incumbents and Potential Entrants: An Empirical Analysis of Firm Behavior

Arbeitspapier

This paper presents the results of an empirical test concerning the auction model of Gilbert and Newbery (1982). The study uses data on German companies in order to analyze expenditures for technology licenses. Aside of standard control variables the motives for innovation expenditures are also taken into account. We differentiate between firms which intend 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 auction model, it turns out that incumbents show higher expenditures for technology licenses than potential entrants.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 05-35

Classification and Topics

• Classification: Wirtschaft ; Management of Technological Innovation and R&D ; Innovation and Invention: Processes and Incentives ; Monopoly; Monopolization Strategies
• Subject: Innovation ; Licenses ; Incumbent versus entrant ; Limited Dependent Variables ; Lizenzvergabe ; Forschungskosten ; Potenzieller Wettbewerb ; Auktionstheorie ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Czarnitzki, Dirk ; Kraft, Kornelius
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/24125
• Last update: 10.03.2025, 11:43 AM CET