IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v07y2003i02ns1363919603000805.html
   My bibliography  Save this article

Technology Strategies in the Knowledge Economy: The Licensing Activity of Himont

Author

Listed:
  • Fabrizio Cesaroni

    (St. Anna School of Advanced Studies, Laboratory of Economics and Management, Piazza Martiri della Libertà 33, 56127 Pisa, Italy)

Abstract

The exchange of technologies and technological knowledge — through joint-ventures, partnerships, licensing, cross-licensing, R&D contracts — and the upsurge of markets for technology are main features of the "knowledge-based" economy. Accordingly, companies are gradually changing their aptitude towards technology trading and exchange. This paper discusses the extent of technology licensing in chemicals, and considers the licensing strategies adopted by large chemical companies. Specifically, by analysing the case of Himont — widely involved in licensing its process technology — this paper explores the motivations for technology licensing, the managerial solutions that Himont adopted for licensing its technology, and the implications of this strategy in terms of antitrust policy. One of the main results emerging from the analysis is the role of external technology suppliers. By increasing the potential competition in the downstream product market, they create incentives for incumbent firms to license-out their technologies, and earn additional profits in the market for technology.

Suggested Citation

  • Fabrizio Cesaroni, 2003. "Technology Strategies in the Knowledge Economy: The Licensing Activity of Himont," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 223-245.
  • Handle: RePEc:wsi:ijimxx:v:07:y:2003:i:02:n:s1363919603000805
    DOI: 10.1142/S1363919603000805
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1363919603000805
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1142/S1363919603000805?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Arora, Ashish & Fosfuri, Andrea, 2003. "Licensing the market for technology," Journal of Economic Behavior & Organization, Elsevier, vol. 52(2), pages 277-295, October.
    2. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:cte:wbrepe:wb041507 is not listed on IDEAS
    2. Eberhard Feess & Michael Hoeck & Oliver Lorz, 2009. "International Technology Transfers and Competition," Review of International Economics, Wiley Blackwell, vol. 17(5), pages 1038-1052, November.
    3. Gambardella, Alfonso & Giuri, Paola & Luzzi, Alessandra, 2007. "The market for patents in Europe," Research Policy, Elsevier, vol. 36(8), pages 1163-1183, October.
    4. Meeta Dasgupta & R.K. Gupta & A. Sahay, 2011. "Linking Technological Innovation, Technology Strategy and Organizational Factors," Global Business Review, International Management Institute, vol. 12(2), pages 257-277, June.
    5. Giuri, Paola & Mariani, Myriam & Brusoni, Stefano & Crespi, Gustavo & Francoz, Dominique & Gambardella, Alfonso & Garcia-Fontes, Walter & Geuna, Aldo & Gonzales, Raul & Harhoff, Dietmar & Hoisl, Karin, 2007. "Inventors and invention processes in Europe: Results from the PatVal-EU survey," Research Policy, Elsevier, vol. 36(8), pages 1107-1127, October.
    6. Fabrizio Cesaroni & Paola Giuri, 2006. "Intellectual Property Rights and Market Dynamics," Chapters, in: Patrizio Bianchi & Sandrine Labory (ed.), International Handbook on Industrial Policy, chapter 11, Edward Elgar Publishing.
    7. Paola Giuri & Myriam Mariani & Stefano Brusoni & Gustavo Crespi & Dominique Francoz & Alfonso Gambardella & Walter Garcia-Fontes & Aldo Geuna & Raul Gonzales & Dietmar Harhoff & Karin Hoisl & Christia, 2005. "Everything you Always Wanted to Know about Inventors (but Never Asked): Evidence from the PatVal-EU Survey," LEM Papers Series 2005/20, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    8. Cesaroni, Fabrizio, 2010. "Marketing for technologies: S-D Logic and the Open Innovation paradigm," DEE - Working Papers. Business Economics. WB wb100702, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    9. SCHOLZ, Eva-Maria, 2014. "Licensing to vertically related markets," LIDAM Discussion Papers CORE 2014020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. Arora, Ashish & Gambardella, Alfonso, 2010. "The Market for Technology," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 641-678, Elsevier.

    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. Figueroa, Nicolás & Serrano, Carlos J., 2019. "Patent trading flows of small and large firms," Research Policy, Elsevier, vol. 48(7), pages 1601-1616.
    2. Nisvan Erkal, 2005. "Optimal Licensing Policy in Differentiated Industries," The Economic Record, The Economic Society of Australia, vol. 81(252), pages 51-60, March.
    3. Antonio Tesoriere, 2021. "Drastic innovation reduces firms’ incentives to create divisions," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 971-994, October.
    4. Hermosilla, Manuel & Wu, Yufei, 2018. "Market size and innovation: The intermediary role of technology licensing," Research Policy, Elsevier, vol. 47(5), pages 980-991.
    5. Neus Palomeras, 2007. "An Analysis of Pure‐Revenue Technology Licensing," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(4), pages 971-994, December.
    6. Czarnitzki, Dirk & Kraft, Kornelius, 2005. "License Expenditures of Incumbents and Potential Entrants: An Empirical Analysis of Firm Behavior," ZEW Discussion Papers 05-35, ZEW - Leibniz Centre for European Economic Research.
    7. Jean-François Sattin, 2016. "Exploring the survival of patent licensing: some evidence from French foreign agreements," The Journal of Technology Transfer, Springer, vol. 41(3), pages 610-630, June.
    8. Lee, Jong-Seon & Park, Ji-Hoon & Bae, Zong-Tae, 2017. "The effects of licensing-in on innovative performance in different technological regimes," Research Policy, Elsevier, vol. 46(2), pages 485-496.
    9. Yoichi Nishihara, 2014. "An Anonymous Buyer of Intangible Property," Journal of Industry, Competition and Trade, Springer, vol. 14(4), pages 511-518, December.
    10. O'Connell, Vincent & Lee, Jong-Ho & O'Sullivan, Don, 2018. "The influence of CEO equity incentives on licensing," European Management Journal, Elsevier, vol. 36(2), pages 266-277.
    11. Fabrizio Cesaroni, 2001. "Technology Strategies in the Knowldge Economy. The Licensing Activity of Himont," LEM Papers Series 2001/18, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    12. Arijit Mukherjee, 2014. "Licensing under convex costs," Journal of Economics, Springer, vol. 111(3), pages 289-299, April.
    13. Lee, Honggi, 2023. "The heterogeneous effects of patent scope on licensing propensity," Research Policy, Elsevier, vol. 52(3).
    14. Lee Davis, 2006. "Licensing Strategies of the Enterprising - but Vulnerable - "Intellectual Property" Vendors," DRUID Working Papers 06-12, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    15. Kim, YoungJun & Vonortas, Nicholas S., 2006. "Technology licensing partners," Journal of Economics and Business, Elsevier, vol. 58(4), pages 273-289.
    16. Arora, Ashish & Gambardella, Alfonso, 2010. "The Market for Technology," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 641-678, Elsevier.
    17. Zhao, Dan & Chen, Hongmin & Hong, Xianpei & Liu, Jingfang, 2014. "Technology licensing contracts with network effects," International Journal of Production Economics, Elsevier, vol. 158(C), pages 136-144.
    18. Ashish Arora & Marco Ceccagnoli, 2006. "Patent Protection, Complementary Assets, and Firms' Incentives for Technology Licensing," Management Science, INFORMS, vol. 52(2), pages 293-308, February.
    19. Maria Isabella Leone & Keld Laursen, 2011. "Patent Exploitation Strategies and Value Creation," Chapters, in: Federico Munari & Raffaele Oriani (ed.), The Economic Valuation of Patents, chapter 4, Edward Elgar Publishing.
    20. Tan Ngoc Vu & Duc Hong Vo & Michael McAleer, 2019. "Rent seeking for export licenses: Application to the Vietnam rice market," Documentos de Trabajo del ICAE 2019-13, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.

    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:wsi:ijimxx:v:07:y:2003:i:02:n:s1363919603000805. 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    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.