Why Do Some Patents Get Licensed While Others Do Not

Peer reviewed: 
Yes, item is peer reviewed.
Scholarly level: 
Faculty/Staff
Final version published as: 

Ruckman, Karen and McCarthy, Ian.  Why Do Some Patents Get Licensed While Others Do Not? Industrial and Corporate Change. 2017. v. 26 n.4, 667-688. DOI: 10.1093/icc/dtw046

 

Date created: 
2016-11
Keywords: 
Licensing
Patents
Licensors
Licensees
Biotechnology
Innovation
Technology commercialization
Topic modelling
Abstract: 

To understand why some patents get licensed and others do not, we estimate a portfolio of firm- and patent-level determinants for why a particular licensor’s patent was licensed over all technologically similar patents held by other licensors. Using data for licensed biopharmaceutical patents, we build a set of alternate patents that could have been licensed-in using topic modeling techniques. This provides a more sophisticated way of controlling for patent characteristics and analyzing the attractiveness of a licensor and the characteristics of the patent itself. We find that patents owned by licensors with technological prestige, experience at licensing, and combined technological depth and breadth have a greater chance at being chosen by licensees. This suggests that a licensor’s standing and organizational learning rather than the quality of its patent alone influence the success of outward licensing.

Language: 
English
Document type: 
Article
Rights: 
Rights remain with the authors.
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