Merging to license: internal vs. external patentee

• Autores: Joel Sandonís Díez, Ramon Faulí Oller
• Localización: Working papers = Documentos de trabajo: Serie AD, Nº. 17, 2003, 22 págs.
• Idioma: inglés
• Enlaces
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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.