Do firms with technological capabilities rush in? Evidence from the timing of licensing of Stanford inventions
Abstract
This study investigates the influence of licensees’ technological capabilities on the timing of technology licensing in university technology commercialization. Drawing on the appropriation-collaboration tension from the literature on university technology licensing and intellectual property management, we propose that while the licensee’s technological capabilities drive early licensing by averting technological obsolescence, this effect diminishes significantly with an overlap in the technological domain of the focal invention due to expropriation concerns. Cox regression analysis of Stanford University’s invention dataset confirmed our hypotheses. This research reveals that technology licensing experiences delays with the most suitable licensees, namely, those with strong technological capabilities in the knowledge domain of the invention for licensing. This study contributes theoretical insights to the technology market literature and provides practical implications for licensing managers and industry partners in technology commercialization.