Exploiting Valuable Knowledge: AppropriationProblems, Uncertaintyand the Value of Licensing Agreements

In the age of globalization, knowledge is one of a firm’s key resources to achievesustainable economic growth. But not only is a broad repository of valuable knowledgeof importance but also an effective value appropriation strategy. The need for the latteris rooted in the intangible nature of knowledge. Arrow (1962; 1971) was the first torecognize and investigate this intangible nature of knowledge-based resources and howit affects the distribution of economic rents between resource owner and other players ina market economy...