Just received notice that one of our submissions to this year’s SMS Conference has received a nomination for the SMS Best Conference Paper Award:
Experience, negotiation leverage, and their effects on exclusivity in technology licensing agreements
Theodore A. Khoury*, Jorge Walter**, & Erin G. Pleggenkuhle-Miles***
* Portland State University, ** The George Washington University, *** University of Nebraska at Omaha
Technology licensing represents a complex area of interfirm contracting due to the highly idiosyncratic nature of these transactions. Focusing on the most valuable, yet often contentious, contractual feature in technology licensing transactions—exclusivity—we examine the differential influence of licensors’ prior experience with out-licensing versus in-licensing technologies. Our study builds on foundational transaction-cost research and develops a theoretical framework explaining whether or not licensors are likely to realize non-exclusive deal outcomes as a function of accumulated licensing experience, and when partner- or market-specific conditions dampen or accentuate the effects of such experience. Leveraging a 26-year sample of 2,664 bioscience-licensing transactions and a novel theoretical framework that accounts for the conditions of negotiation leverage within these unique transactions, we examine how exclusivity provisions vary across technology licenses.
Keywords: Technology licensing; licensing experience; exclusivity; transaction costs; partner prominence; strategic alliances; bioscience industry
For a copy of this article, please contact me directly.