Merging to license: internal vs. external patentee

• Autores: Ramon Faulí Oller, Joel Sandonís Díez
• Localización: Documentos de Trabajo BILTOKI, ISSN-e 1134-8984, Nº. 6, 2003
• Idioma: inglés
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• Resumen

  • In this paper, we endogenize the decision of a research laboratory that owns a patented process innovation on whether to remain independent as an external patentee or to merge with a manufacturing firm, becoming an internal to the industry patentee. We show that a merger is profitable only for the case of small innovations whereas only large innovations make it welfare improving. As a consequence, the antitrust authority should forbid all (profitable) mergers.