Inefficiencies in the sale of ideas: theory and empirics

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Allain, Marie-Laure; Henry, Emeric; Kyle, Margaret;
(2011)
  • Publisher: HAL CCSD
  • Subject: Innovation | JEL: O - Economic Development, Innovation, Technological Change, and Growth/O.O3 - Innovation • Research and Development • Technological Change • Intellectual Property Rights/O.O3.O32 - Management of Technological Innovation and R&D | JEL : O - Economic Development, Innovation, Technological Change, and Growth/O.O3 - Innovation • Research and Development • Technological Change • Intellectual Property Rights/O.O3.O32 - Management of Technological Innovation and R&D | Biotechnology | Bargaining | Market structure | Biotechnology,Innovation,Licensing,Market structure,Bargaining,Pharmaceuticals,Biotechnology. | JEL : L - Industrial Organization/L.L2 - Firm Objectives, Organization, and Behavior/L.L2.L24 - Contracting Out • Joint Ventures • Technology Licensing | Pharmaceuticals | JEL : L - Industrial Organization/L.L1 - Market Structure, Firm Strategy, and Market Performance/L.L1.L13 - Oligopoly and Other Imperfect Markets | Biotechnology. | [ SHS.ECO ] Humanities and Social Sciences/Economies and finances | [SHS.GESTION]Humanities and Social Sciences/Business administration | [SHS.ECO]Humanities and Social Sciences/Economies and finances | JEL: L - Industrial Organization/L.L1 - Market Structure, Firm Strategy, and Market Performance/L.L1.L13 - Oligopoly and Other Imperfect Markets | JEL: L - Industrial Organization/L.L2 - Firm Objectives, Organization, and Behavior/L.L2.L24 - Contracting Out • Joint Ventures • Technology Licensing | [ SHS.GESTION ] Humanities and Social Sciences/Business administration | JEL: L - Industrial Organization/L.L6 - Industry Studies: Manufacturing/L.L6.L65 - Chemicals • Rubber • Drugs • Biotechnology | JEL : L - Industrial Organization/L.L6 - Industry Studies: Manufacturing/L.L6.L65 - Chemicals • Rubber • Drugs • Biotechnology | Licensing

The sale of ideas (e.g. through licensing) facilitates vertical specialization and the division of labor between research and development. This specialization can improve the overall efficiency of the innovative process. However, these gains depend on the timing of the ... View more
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