This paper analyzes the relationship between technology licensing and the effectiveness of patent protection. Using the 1994 Carnegie Mellon survey on industrial research and development (R& D) in the United States, we develop and test a simple structural model in which the patenting and...

Conventional learning curves relating unit cost to measures of production experience are estimated for 221 specialty chemicals produced by a Fortune 500 company. Detailed records on cost and R...D coupled with insights from company personnel are used to explain the variation across products in...

We examine whether ownership of intellectual property rights (IPR) or downstream capabilities is effective in encouraging entry into markets complementary to a proprietary platform by preventing the platform owner from expropriating rents from start-ups. We study this question in the context of...

This paper assesses the validity and accuracy of firms' backward patent citations as a measure of knowledge flows from public research by employing a newly constructed data set that matches patents to survey data at the level of the research and development lab. Using survey-based measures of...

A critical factor in industrial competitiveness is the ability of firms to exploit new technological developments. We term this ability a firm's absorptive capacity and argue that such a capability not only enables a firm to exploit new extramural knowledge, but to predict more accurately the...

Joglekar, Bohl, and Hamburg (JBH) make two basic sets of criticisms of our paper (Cohen and Levinthal [Cohen, W. M., D. A. Levinthal. 1994. Fortune favors the prepared firm. Management Sci. 40 227--251.]) in their comment. First, they object to two key elements of the model structure: the...

Economists studying innovation and technological change have made significant progress toward understanding firms' profit incentives as drivers of innovation. However, innovative performance in firms should also depend heavily on the pecuniary and nonpecuniary motives of the employees actually...

In this paper, we use data from the Carnegie Mellon Survey on industrial R&D to evaluate for the U.S. manufacturing sector the influence of "public"(i.e., university and government R&D lab) research on industrial R&D, the role that public research plays in industrial R&D, and the pathways...

We analyze how entrepreneurial opportunity cost conditions performance. Departing from the common practice of using survival as a measure of entrepreneurial performance, we model both failure and cash-out (liquidity event) as conditioned by the same underlying process. High-opportunity-cost...

This paper compares the innovation performance of established pharmaceutical firms and biotech companies, controlling for differences in the scale and scope of research. We develop a structural model to analyze more than 3,000 drug research and development projects advanced to preclinical and...