FIRM PERCEPTIONS OF COMPETITIVE ADVANTAGE OF NEW UNIVERSITY TECHNOLOGY AND THEIR IMPACT ON EXCLUSIVITY OF LICENSING TRANSACTIONS

Commercialization of new university technology within the new product development process is an important tool by which established firms can expand their innovative capabilities. The competitive advantage afforded by new university technologies, however, varies considerably. An exclusivity agreement is a useful tool to protect the firm's investment and help ensure that value is appropriated through the commercialization process. An empirical study of 66 technology transfer projects in the information and communications technology industry reveals that when the firm's perception of competitive advantage afforded by the new technology is high, the licensing transaction is usually secured by some form of exclusivity agreement.