|Appears in Collections:||Accounting and Finance Working Papers|
|Title:||IP-for-IP or Cash-for-IP? R&D Competition and the Market for Technology|
|Citation:||Herbst P & Jahn E (2011) IP-for-IP or Cash-for-IP? R&D Competition and the Market for Technology. SSRN Working Paper Series. Social Science Research Network.|
|Publisher:||Social Science Research Network|
|Series/Report no.:||SSRN Working Paper Series|
|Abstract:||This paper argues that firms use 'IP-for-IP' policies such as cross-licensing to strategically restrict transactions in the market for technology. The commitment to limit trade to reciprocal exchange (barter instead of cash transactions) enables firms to alter the allocation of R&D and soften R&D competition. In particular, it induces firms to focus R&D on their area of expertise. The costs of IP-for-IP are foregone gains from trade. Our analysis of the trade-offs involved shows that IP-for-IP is profitable in industries where firms differ in their capabilities to commercialize IP. Patent complementarities and firm asymmetries further strengthen the optimality of IP-for-IP.|
|Type:||Working or Discussion Paper|
|Rights:||Author retains copyright|
|Affiliation:||Accounting and Finance|
Goethe University Frankfurt
|Herbst_2011_IP-for-IP_or_Cash-for-IP.pdf||240.01 kB||Adobe PDF||View/Open|
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