Research about licensing rules of technology alliance

Technology alliances are an important economic institution which can be defined as formal or informal organizations based on whether for-profit firms share patent rights with each other and third parties. This paper sets the licensing terms associated with technology alliances, whose independent licensing allows no competition for the alliance´s offering and furthermore enhances members´ incentives to produce innovations. The theoretical framework predicts that (a) alliances consisting of complementary patents are more likely to allow members to engage in independent licensing and (b) that the requirement that firms license patents to the alliance should be associated with alliances that consist of complements and allow independent licensing. This paper then examine these patterns in a regression analysis and use a logit specification, with a dummy variable denoting a alliance that required alliances as the dependent variable. This paper theoretically examines the licensing rules associated with technology alliances.