IDEAS home Printed from https://ideas.repec.org/a/ove/journl/aid15939.html
   My bibliography  Save this article

An innovation adoption model of licensing-in for US start-ups

Author

Listed:
  • Bernadette Power
  • Gavin C. Reid

Abstract

Using the Kauffman panel dataset of US start-ups, we analyse the key determinants of licensing-in adoption. Licensing-in entails an intellectual property contract between the licensor (e.g. upstream established firm) and licensee (e.g. downstream start-up) aiming to bring an innovation to market rapidly. Assuming maximizing of the owner’s managerial utility in the start-up years, we explain licensing-in adoption through firm characteristics like size, R & D and capital structure, as well as other IP types, and controls for year and regional fixed effects, using panel probit estimation with adjustments for sample selection bias and endogeneity. We find key determinants of licensing-in to be owners’ equity, product (rather than service) sales and R & D spend; and then comment on their policy implications for business incubation.

Suggested Citation

  • Bernadette Power & Gavin C. Reid, 2021. "An innovation adoption model of licensing-in for US start-ups," Economics and Business Letters, Oviedo University Press, vol. 10(4), pages 369-382.
  • Handle: RePEc:ove:journl:aid:15939
    as

    Download full text from publisher

    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/15939
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. André Spithoven & Wim Vanhaverbeke & Nadine Roijakkers, 2013. "Open innovation practices in SMEs and large enterprises," Small Business Economics, Springer, vol. 41(3), pages 537-562, October.
    2. Keld Laursen & Maria Isabella Leone & Salvatore Torrisi, 2010. "Technological exploration through licensing: new insights from the licensee's point of view," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(3), pages 871-897, June.
    3. Gabriele Santoro & Alberto Ferraris & Elisa Giacosa & Guido Giovando, 2018. "How SMEs Engage in Open Innovation: a Survey," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(2), pages 561-574, June.
    4. Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Santoro, Gabriele & Bresciani, Stefano & Papa, Armando, 2020. "Collaborative modes with Cultural and Creative Industries and innovation performance: The moderating role of heterogeneous sources of knowledge and absorptive capacity," Technovation, Elsevier, vol. 92.
    2. Yongseok Jang, 2019. "Entreprenurial Human Capital and Inward Technology Licensing in the Context of New Technology-Based Firms," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(07), pages 1-20, November.
    3. Omar Carrasco-Carvajal & Mauricio Castillo-Vergara & Domingo García-Pérez-de-Lema, 2023. "Measuring open innovation in SMEs: an overview of current research," Review of Managerial Science, Springer, vol. 17(2), pages 397-442, February.
    4. Rhaiem, Khalil & Doloreux, David, 2024. "Inbound open innovation in SMEs: A microfoundations perspective of dynamic capabilities," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    5. Lindomar Subtil Oliveira & Márcia E. Soares Echeveste & Marcelo Nogueira Cortimiglia & Aline C. Gularte, 2019. "Open Innovation in Regional Innovation Systems: Assessment of Critical Success Factors for Implementation in SMEs," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(4), pages 1597-1619, December.
    6. Graciela Corral de Zubielqui & Noel Lindsay & Wendy Lindsay & Janice Jones, 2019. "Knowledge quality, innovation and firm performance: a study of knowledge transfer in SMEs," Small Business Economics, Springer, vol. 53(1), pages 145-164, June.
    7. JUSTIN DORAN & NOIRIN McCARTHY & MARIE O’CONNOR, 2019. "The Importance Of Internal Knowledge Generation And External Knowledge Sourcing For Sme Innovation And Performance: Evidence From Ireland," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(07), pages 1-30, October.
    8. Bourke, Jane & Roper, Stephen & Love, James H., 2020. "Innovation in legal services: The practices that influence ideation and codification activities," Journal of Business Research, Elsevier, vol. 109(C), pages 132-147.
    9. Caroline Mothe & Uyen T. Nguyen-Thi & Ángela Triguero, 2018. "Innovative products and services with environmental benefits: design of search strategies for external knowledge and absorptive capacity," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 61(11), pages 1934-1954, September.
    10. Cabaleiro-Cerviño, Goretti & Burcharth, Ana, 2020. "Licensing agreements as signals of innovation: When do they impact market value?," Technovation, Elsevier, vol. 98(C).
    11. Mendi, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, José J., 2020. "Cooperation for innovation and technology licensing: Empirical evidence from Spain," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    12. Livieratos, Antonios D. & Tsekouras, George & Vanhaverbeke, Wim & Angelakis, Antonios, 2022. "Open Innovation moves in SMEs: How European SMEs place their bets?," Technovation, Elsevier, vol. 117(C).
    13. Petra A. Nylund & Xavier Ferras-Hernandez & Alexander Brem, 2020. "Automating profitably together: Is there an impact of open innovation and automation on firm turnover?," Review of Managerial Science, Springer, vol. 14(1), pages 269-285, February.
    14. Kaya, Bahar & Abubakar, A. Mohammed & Behravesh, Elaheh & Yildiz, Harun & Mert, Ibrahim Sani, 2020. "Antecedents of innovative performance: Findings from PLS-SEM and fuzzy sets (fsQCA)," Journal of Business Research, Elsevier, vol. 114(C), pages 278-289.
    15. Mikko Moilanen & Stein Østbye & Kristin Woll, 2014. "Non-R&D SMEs: external knowledge, absorptive capacity and product innovation," Small Business Economics, Springer, vol. 43(2), pages 447-462, August.
    16. Solon Moreira & Thomas Maximilian Klueter & Stefano Tasselli, 2020. "Competition, Technology Licensing-in, and Innovation," Organization Science, INFORMS, vol. 31(4), pages 1012-1036, July.
    17. Alberto Bertello & Alberto Ferraris & Paola Bernardi & Bernardo Bertoldi, 2022. "Challenges to open innovation in traditional SMEs: an analysis of pre-competitive projects in university-industry-government collaboration," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 89-104, March.
    18. Varshney, Mayank & Jain, Amit, 2023. "Technology acquisition following inventor exit in the biopharmaceutical industry," Technovation, Elsevier, vol. 126(C).
    19. Tsai, Fu-Sheng & Cabrilo, Sladjana & Chou, Hsin-Hui & Hu, Feng & Tang, Au Due, 2022. "Open innovation and SME performance: The roles of reverse knowledge sharing and stakeholder relationships," Journal of Business Research, Elsevier, vol. 148(C), pages 433-443.
    20. Manuel Guisado-González & Jennifer González-Blanco & José Luis Coca-Pérez, 2019. "Exploration, exploitation, and firm age in alliance portfolios," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(4), pages 387-406, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ove:journl:aid:15939. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Francisco J. Delgado (email available below). General contact details of provider: https://edirc.repec.org/data/deovies.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.