A Public Patentee’s Technology Transfer under a Leadership Structure∗
نویسندگان
چکیده
In this paper, we consider the issue of optimal licensing from the viewpoint of a public patent holder having no production facilities when the product market has a Stackelberg leadership structure. We show that fee licensing is always at least as good as royalty licensing for the public patentee maximizing the social welfare. It is also shown that for small innovations, there exists an equilibrium in which the public patentee licenses his patented technology to only the efficient, profit-maximizing private firm but he never licenses his technology to only the inefficient private firm.
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