Industry/University Licensing: Characteristics, Concerns and Issues from the Perspective of the Buyer

Posted: 24 Nov 2009

See all articles by Jerry G. Thursby

Jerry G. Thursby

Emory University - Department of Economics; Georgia Institute of Technology - Scheller College of Business

Marie C. Thursby

Georgia Institute of Technology - Strategic Management Area; National Bureau of Economic Research (NBER)

Date Written: 2003

Abstract

Invention licensing is approached from theperspective of firms engaged in licensing technology. A survey of industrylicensing professionals was conducted, including 112 businesses that activelylicense university technologies and 188 that do not. The early stage of mostuniversity technologies is the central element of the conducted survey, leadingto the following findings: (1) early stage technologies are more likely to fail(i.e., they do not fit the need anticipated at the time of the license); (2)many firms choose not to license form universities because of the embryonicnature of university technologies; and (3) early stage technologies are usuallylicensed to firms identified by the faculty inventor. To understand how the process works, the development stage of universitytechnologies, the characteristics of their licensing contract, and the sourcesof information about university technologies are considered. It is suggestedthat contracts that include equity and/or royalties are important, as they makefaculty returns commercially successful; also, reward-sharing is recommended.Concerns about university licensing suggest a possible change in the trajectoryof university research from basic research and teaching towards the needs ofindustry. Further research on the role of faculty in the technology transferprocess is recommended.(CBS)

Keywords: Buyers, Early stage technologies, Technology licenses, Stages of development, University-firm relations, Technology transfer, High technology industries, Colleges & universities, Reward systems, License agreements, Inventors, Contracts & agreements, Royalties, Faculty, University-industry relations, Equity, Licensing strategies

Suggested Citation

Thursby, Jerry G. and Thursby, Marie C., Industry/University Licensing: Characteristics, Concerns and Issues from the Perspective of the Buyer (2003). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1512301

Jerry G. Thursby (Contact Author)

Emory University - Department of Economics ( email )

1602 Fishburne Drive
Atlanta, GA 30322
United States

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

Marie C. Thursby

Georgia Institute of Technology - Strategic Management Area ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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