Cooperation strategy of technology licensing based

Authors: Jinshi Cheng Bengang Gong Bangyi Li

Publish Date: 2017/03/11

Volume: 268, Issue: 1-2, Pages: 387-404

PDF Link

Abstract

This study analyzes the issue of technologylicensing cooperation between a firm with production patent technology and a firm with inferior production technology and obtains the evolution trend of the technologylicensing deal and cooperation strategy under fixedfee licensing and royalty licensing situation We find that the probability of successful cooperation between the two firms increases when fixed technologylicense fees and cost savings from technology licensing increase simultaneously and change of fixed technology license fees and cost savings affects the willingness to cooperate of the firm with inferior production technology and not the firm with production patent technology Furthermore modest royalty fees promote successful cooperation In both licensing situations for the firm with production patent technology an increase in the market share of its products or nonlicensing resource sharing costsaving value reduces the cooperation probability Meanwhile for the firm with inferior production technology an increase in the market share of its products promotes successful cooperation in the royalty licensing case but requires conditions for fixed technologylicensing fees and cost savings lower than a certain value in the fixedfee licensing caseThe research is supported partially by the Natural Sciences Foundation of China Nos 71171002 71671001 and 71672071 the Key Project of Chinese National Social Science Fund No 13AZD062 the Key Project of Natural Science Research of Higher Education Institutions of Anhui Province No KJ2015A112 and the Key Project of the University Youth Elite Support Plan of Anhui Province No gxyqZD2016116If beta Delta A q A alpha F0 namely if q A fracalpha Fbeta Delta A or Ffracbeta Delta A q A alpha we have fracbeta Delta A q A alpha Fbeta Delta A q A +F0 there always is yfracpi 1nn pi 1yn pi 1yy pi 1ny +pi 1nn pi 1yn Here x=1 is an ESS Putting p A =aq B bq A into beta Delta A q A F0 we can obtain Fbeta Delta A fracp B a+q B alpha b Conclusion 1 is provedUnder 0fracpi 1nn pi 1yn pi 1yy pi 1ny +pi 1nn pi 1yn 1 that is 0fracbeta Delta A q A alpha Fbeta Delta A q A +F1 if yfracbeta Delta A q A alpha Fbeta Delta A q A +F Fx x=1 0 and Fx x=0 0 then x=1 is the stable point if yfracbeta Delta A q A alpha Fbeta Delta A q A +F Fx x=1 0 and Fx x=0 0 then x=0 is the stable point Conclusion 2 is provedIf xfracpi 2nn pi 2ny pi 2yy pi 2yn +pi 2nn pi 2ny then fracalpha Fbeta Delta B q B Fvarepsilon q B +beta Delta B q B 0 and varepsilon +beta Delta B q BFfracbeta Delta B q B alpha Substituting q B =fracaq A p A b into varepsilon +beta Delta B q BFfracbeta Delta B q B alpha we get varepsilon +beta Delta B fracaq A p A bFfracbeta Delta B aq A p A alpha b Therefore when varepsilon +beta Delta B q BFfracbeta Delta B q B alpha or varepsilon +beta Delta B fracaq A p A bFfracbeta Delta B aq A p A alpha b y=1 is an ESS Conclusion 3 is provedUnder 0fracalpha Fbeta Delta B q B Fvarepsilon +beta Delta B q B 1 if xfracalpha Fbeta Delta B q B Fvarepsilon +beta Delta B q B we have and Fprime y y=00 so y=1 is the stable point at this time if xfracalpha Fbeta Delta B q B Fvarepsilon +beta Delta B q B then Fy y=0 0 and Fy y=1 0 so y=0 is the stable point Conclusion 4 is provedAccording to fracpi 2nn pi 2ny pi 2yy pi 2yn +pi 2nn pi 2ny =fracgamma alpha Delta B beta Delta B +varepsilon gamma and varepsilon gamma just when gamma fracDelta B alpha then fracgamma alpha Delta B beta Delta B +varepsilon gamma 0 In this situation there is always xfracpi 2nn pi 2ny pi 2yy pi 2yn +pi 2nn pi 2ny Therefore y=1 is an ESS Conclusion 7 is provedFor fracpartial s F partial F=frac12frac1+alpha beta Delta A q A F+beta Delta A q A 2+fracalpha varepsilon q B +alpha 1beta Delta B q B Fvarepsilon +beta Delta B q B 2 to make the expression more than zero just to considering the sign of fracalpha varepsilon q B +alpha 1beta Delta B q B Fvarepsilon +beta Delta B q B 2 obtain varepsilon frac1alpha beta Delta B alpha then fracpartial s F partial F0 From fracpartial s F partial varepsilon =fracbeta Delta B q B alpha Fq B 2Fvarepsilon +beta Delta B q B 2if Ffracbeta Delta B q B alpha then fracpartial s F partial varepsilon 0 From fracpartial s F partial q B =frac1alpha beta Delta B alpha varepsilon F2Fvarepsilon +beta Delta B q B 2 if varepsilon frac1alpha beta Delta B alpha then fracpartial s F partial q B 0 fracpartial s F partial q A =fracbeta Delta A F1+alpha 2F+beta Delta A q A 20 From fracpartial spartial beta =frac12frac1+alpha FDelta A q A F+beta Delta A q A 2+fracFalpha Fvarepsilon qrDelta B q B Fvarepsilon +beta Delta B q B 2 only the second fractions in the bracket Falpha Fvarepsilon q B 0 that is Ffracvarepsilon q B 1alpha then fracpartial spartial beta 0 Fromfracpartial s F partial alpha =fracFbeta Delta B q B +beta Delta A q A +varepsilon q B 2F+beta Delta A q A F+varepsilon +beta Delta B q B when the denominator varepsilon +beta Delta B q B F0 that is Fvarepsilon +beta Delta B q B then fracpartial s F partial alpha 0 From fracpartial s F partial Delta B =fracFalpha Fvarepsilon q B beta q B 2Fvarepsilon +beta Delta B q B 2 when Ffracvarepsilon q B 1alpha fracpartial s F partial Delta B 0 fracpartial s F partial Delta A =frac1+alpha beta Fq A 2F+beta Delta A q A 20 Conclusion 9 is provedAccording to fracpartial s R partial gamma =fracDelta B alpha beta Delta B alpha varepsilon beta Delta B +varepsilon gamma 2+frac1+alpha beta Delta A q A q B beta Delta A q A +q B gamma we find that as long as the first fraction of the molecule is greater than zero namely varepsilon fracDelta B alpha beta Delta B alpha fracpartial s R partial gamma is constant higher than zero according to fracpartial s R partial varepsilon =fracalpha gamma Delta B beta Delta B +varepsilon gamma 20 just when gamma fracDelta B alpha fracpartial s Rpartial varepsilon is constant higher than zero fracpartial s R partial q B =frac1+alpha beta Delta A q A gamma beta Delta A q A +q B gamma 20 fracpartial s R partial q A =frac1+alpha beta Delta A q B gamma beta Delta A q A +q B gamma 20 from fracpartial s R partial alpha =fracq B gamma beta Delta A q A +q B gamma fracgamma beta Delta B +varepsilon gamma it is easy to get that when gamma fracvarepsilon q B +beta Delta B q B beta Delta A q A 2q B fracpartial s R partial alpha 0 for fracpartial s R partial beta =fracDelta B alpha gamma Delta B beta Delta B +varepsilon gamma 2frac1+alpha gamma Delta A q A q B beta Delta A q A +q B gamma as long as the front fraction of the molecule is less than zero that is when gamma fracDelta B alpha it can guarantee that fracpartial s Rpartial beta is less than zero constantly we also obtain that fracpartial s R partial Delta B =fracvarepsilon +1+alpha beta gamma beta Delta B +varepsilon gamma 20 and fracpartial s R partial Delta A =frac1+alpha gamma beta q A q B beta Delta A q A +q B gamma 20 Conclusion 10 is proved

Keywords: