When does selling make you wiser? Impact of licensing on Chinese firms’ patenting propensity

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With the rising trend of open innovation, firms routinely engage in licensing out their technologies. However, little research has examined how licensing-out impacts a firm’s subsequent ability to innovate. We argue that firms develop superior intellectual property management capabilities as a function of their licensing-out activities. We further argue that firms that participate in technology market through both licensing-in as well as licensing-out develop superior licensing and knowledge assimilation capabilities, which help them improve their patenting performance. We test our hypotheses using a longitudinal survey data of Chinese firms and find broad support of our hypotheses. We further discuss the implications of our theory and managerial practice. Copyright Springer Science+Business Media New York 2015

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© 2014 Springer Science+Business Media New York. Publisher’s version of record: http://dx.doi.org/10.1007/s10961-014-9354-y

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Journal of Technology Transfer