Fuel on the Invention Funnel: Technology Licensing-in, Antecedents and Invention

In this paper, we examine the impact of technology licensing-in on firm invention performance. Studying a sample of 266 licensees and matched non-licensees using a two-part model specification, we find that licensees are more likely to introduce inventions than their non-licensee counterparts. This holds both if we consider invention in general, and invention in the licensed technological class only. We also show that familiarity with the licensed technology and technological specialization drives licensees to pursue a narrow invention strategy primarily focusing on the technological class specified in the license agreement.