The historical market for technology licenses: chemicals, pharmaceuticals, and electrical engineering in imperial Germany

Arbeitspapier

We investigate a sample of 180 technology licensing contracts closed by German chemical, pharmaceutical, and electrical engineering companies between 1880 and 1913. A regression analysis shows that licensing contracts closed before a patent was granted and contracts closed between firms and individual inventors had a higher probability of including a profit-sharing clause. This supports Jensen and Thursby's (2001) model, who propose equity-sharing licensing contracts to solve moral hazard problems. Moreover, we show that milestones were a substitute for profit shares. Furthermore, exclusive licences offered a significantly higher profit share to the licensor.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Preprints of the Max Planck Institute for Research on Collective Goods ; No. 2009,25

Classification and Topics

• Classification: Wirtschaft ; Micro-Business History: Europe: Pre-1913 ; Management of Technological Innovation and R&D ; Transactional Relationships; Contracts and Reputation; Networks
• Subject: Economic History ; Germany ; pre-1913 ; Licensing contracts ; Technology transfer

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Burhop, Carsten ; Lübbers, Thorsten
• Event: Veröffentlichung
• (who): Max Planck Institute for Research on Collective Goods
• (where): Bonn
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/32238
• Last update: 10.03.2025, 11:44 AM CET