Technology gap, technology competition and MNCs' technology licensing strategies: A transaction cost theory perspective

Abstract

Based on transaction cost theory, this paper investigates the relationship between technology capability and MNC's technology licensing strategies. Using data of international patent licensing happened in China during 2005-2006, this study examine the impact of technology gap on non-exclusive right in licensing contract. And technology competition negatively moderates the relationship between technology gap and licensor's choice. The results extend technology licensing theory.