Exploiting patent protection of knowledge-based competitive advantages through market transactions

  • Christian Grube


The discussion in Part III shows that cooperative exploitation represents one strategic option for solving Arrow’s (1962; 1971) information paradox and consequently allows the effective appropriation of value from knowledge assets in general and patents in particular. In the case of innovations, licensing agreements are one type of performance- oriented contracts used to exploit the value embedded in technical knowledge (Teece, 1986). Licensing activities have motivated a large body of literature, covering topics such as reasons for (Mottner and Johnson, 2000; Saracho, 2002; Arora and Fosfuri, 2003; Lichtenthaler, 2007) and results of (Arrow, 1962; Rockett, 1990) granting licenses, profit-maximizing licensing strategies (Katz and Shapiro, 1986; Kamien and Tauman, 2002; Poddar and Sinha, 2004; Fosfuri, 2006), ways to distribute the value created between licensor and licensee (Kamien and Tauman, 1986), timing of licensing (before or after developing a technology) (Gallini, 1984; Gallini and Winter, 1985; Shapiro, 1985), and the types of innovations that are transferred (Katz and Shapiro, 1985; Arora, 1995).


Patent Protection Patent Citation License Agreement Patent Document Contract Period 
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© Gabler | GWV Fachverlage GmbH 2009

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  • Christian Grube

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