'Learning-by-Licensing': R & D and Technology Licensing in Brazilian Invention

Abstract

With the recent liberalization of technology flows, changes in the pattern of domestic invention can be expected in Brazil. This paper models the decision of a firm to engage in innovative activity and to protect the results of that activity. Using a unique firm-level dataset collected for this purpose, estimation indicates that the interactions between current R & D and past licensing are prime contributors to innovative success. A firm's experience with technology licenses not only adds to the productivity of current R & D, but also affects whether a firm applies for full patent or utility model protection. Firm size, employee training, and knowledge spillovers also have an impact on the inventive process.

JEL Classification: O31, O32, O14, O54, D21