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ICC Advance Access originally published online on October 17, 2008
Industrial and Corporate Change 2009 18(3):529-550; doi:10.1093/icc/dtn038
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© The Author 2008. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.

Inter-firm technology transfer: partnership-embedded licensing or standard licensing agreements?

John Hagedoorn, Stefanie Lorenz-Orlean and Hans van Kranenburg

Correspondence: John Hagedoorn, Department of Organization and Strategy, Faculty of Economics and Business Administration, Maastricht University, PO Box 616, 6200 MD Maastricht, The Netherlands. e-mail: j.hagedoorn{at}os.unimaas.nl

Correspondence: Stefanie Lorenz-Orlean, Department of Organization and Strategy, Faculty of Economics and Business Administration, Maastricht University, PO Box 616, 6200 MD Maastricht, The Netherlands. e-mail: s.lorenz{at}os.unimaas.nl

Correspondence: Hans van Kranenburg, Nijmegen School of Management, Institute for Management Research, Radboud University Nijmegen, PO Box 9108, 6500 HK Nijmegen, The Netherlands. e-mail: h.vankranenburg{at}fm.ru.nl

When companies decide to engage in technology transfer through exclusive licensing to other firms, they have two basic options: to use standard licensing contracts or to set-up more elaborate partnership-embedded licensing agreements. We find that broader partnership-embedded licensing agreements are preferred with higher levels of technological sophistication of industries, with greater perceived effectiveness of secrecy as a means of appropriability, and when licensors are smaller than their licensees. Innovative differential between companies, innovative supremacy of the licensor and market and technological overlap between partners appear to have no effect on the preference for a particular form of licensing.


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