FUEL ON THE INVENTION FUNNEL: TECHNOLOGY LICENSING-IN, ANTECEDENTS AND INVENTION PERFORMANCE

Technology management has so far largely overlooked that licensing-in may represent learning opportunities for the recipient firm. Attention has primarily been directed towards a more tactic explanation for the decision of firms to in-license external technologies. However, increasing empirical evidence witnesses an inducing effect of licensing-in on the inventive behavior of the single firm which, in turn, feeds its development and growth. The aim of this paper is to explore whether licensing-in in fact acts as a catalyst for inventive activities pursued by licensee firms. We employ a two-part model to investigate the inventiveness of 133 licensees compared to an equally sized matched sample of non-licensees. The study reveals that licensees exhibit elevated invention performances compared to non-licensee counterparts. This holds both when considering invention in general and invention in licensed technological class.. In addition, the paper reveals that familiarity with the licensed technology and technological specialization instigates the licensee to pursue a narrow invention strategy as defined by the technological classes of the licensed patent