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http://hdl.handle.net/1893/24178| Appears in Collections: | Accounting and Finance Journal Articles |
| Peer Review Status: | Refereed |
| Title: | IP-for-IP or Cash-for-IP? R&D Competition and the Market for Technology |
| Author(s): | Herbst, Patrick Jahn, Eric |
| Contact Email: | patrick.herbst@stir.ac.uk |
| Keywords: | Intellectual property R&D competition IP-for-IP Cross-licensing Technology trade |
| Issue Date: | Aug-2017 |
| Date Deposited: | 9-Sep-2016 |
| Citation: | Herbst P & Jahn E (2017) IP-for-IP or Cash-for-IP? R&D Competition and the Market for Technology. Review of Industrial Organization, 51 (1), pp. 75-101. https://doi.org/10.1007/s11151-016-9542-z |
| Abstract: | We analyze how firms might benefit from trading restrictions in the market for technology. We show that restricting trade to reciprocal exchange (“IP-for-IP” barter instead of cash transactions), as in cross-licensing agreements, alters the allocation of R&D resources and reduces overinvestment in R&D. The tighter are the trading restrictions, the higher are the costs that are due to forgone gains from trade. Our analysis of the trade-offs involved shows that firms benefit from IP-for-IP restrictions, compared to both free trade and no trade environments, in industries where: (1) firms differ in their capabilities to commercialize IP; and (2) patent complementarities exist. |
| DOI Link: | 10.1007/s11151-016-9542-z |
| Rights: | © The Author(s) 2016 This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. |
| Licence URL(s): | http://creativecommons.org/licenses/by/4.0/ |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| HerbstJahn_RevIndOrgan_2017.pdf | Fulltext - Published Version | 674.9 kB | Adobe PDF | View/Open |
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