The Transfer And Licensing of Know-How And Intellectual Property: Understanding the Multinational Enterprise in the Modern World

Contents......Page 6
Introduction......Page 10
Part I: INTERNATIONAL TECHNOLOGY TRANSFER......Page 18
II. TECHNOLOGY TRANSfER AND THE PRODUCTION OF KNOWLEDGE......Page 20
111. THE SAMPLE......Page 21
IV. DEFINITION OF TECHNOLOGY TRANSFER COSTS......Page 23
V. TRANSFER COSTS: DATA AND HYPOTHESES......Page 25
VI. DETERMINANTS OF THE COST OF INTERNATIONAL TECHNOLOGY TRANSFER: TESTS AND RESULTS......Page 29
VII. DIFFERENCES BETWEEN INTERNATIONAL AND DOMESTIC TECHNOLOGY TRANSFER......Page 33
VIII. CONCLUSION......Page 37
REFERENCES......Page 39
2. Foundations of the Time-Cost Tradeoff......Page 40
3. Estimation of the Time-Cost Tradeoff......Page 42
4. Determinants of the Elasticity of Cost with Respect to Time......Page 44
5. Conclusion......Page 46
References......Page 47
3. The Market for Know-How and the Efficient International Transfer of Technology David J. Teece......Page 48
CODIFICATION AND TRANSFER COSTS......Page 49
CHARACTERISTICS OF THE MARKET FOR KNOW-HOW......Page 51
CODES OF CONDUCT AND THE REGULATION OF TECHNQLOGYIMPORTS......Page 55
REGULATION OF TECHNOLOGY EXPORTS......Page 59
CONCLUSION......Page 62
1. Introduction......Page 64
2. Mansfield\'s vision and early work......Page 65
3. The economics of (international) technology transfer......Page 66
4. Summarizing elements of received wisdom on replication and transfer......Page 67
5. Capturing value from intellectual capital......Page 72
6. Valuation issues: accounting and market metrics......Page 74
7. The multinational firm, internalization, and R&D activity......Page 77
Notes......Page 78
References......Page 79
Part II: LICENSING AND CROSS-LICENSING......Page 82
1. Introduction......Page 84
3. Profiling from innovation: Basic building blocks......Page 85
3.2. The dominant design paradigm......Page 86
3.3. Complementary assets......Page 87
4.2.1. Pre paradigmatic phase......Page 89
4.2.2. Paradigmatic stage......Page 90
5. Channel strategy issues......Page 91
5.1. Contractual modes......Page 92
5.2. Integration modes......Page 94
5.3. Integration versus contract strategies: An analytic summary......Page 95
5.5. The CAT scanner, the IBM Pc. and NutraSweet: insights from the framework......Page 97
6.1. Allocating R&D resources......Page 99
6.3. Regimes of appropriability and industry structure......Page 100
6.5. The importance of manufacturing to international competitiveness......Page 101
6. 7. Implications for the international distribution of the benefits from innovation......Page 102
References......Page 103
6. Managing Intellectual Capital: Licensing and Cross-Licensing in Semiconductors and Electronics Peter C. Grindley and David J. Teece......Page 106
Background-The Formation of RCA......Page 108
AT&T\'s Cross-Licensing Practices......Page 110
Cross-Licensing in the Computer Industry-IBM......Page 112
Impact of Consent Decrees on Industry Development......Page 113
Licensing Objectives......Page 114
\"Proud List\" Royalty Valuation Process......Page 116
Strategic Considerations......Page 117
Impact of TI\'s Licensing Strategy......Page 118
Innovation Strategy......Page 120
Licensing Objectives......Page 121
IP Management......Page 122
Contrasting IP Management Objectives......Page 124
Initial Growth Phase......Page 125
Increased Global Competition......Page 126
Lessons for Innovation Management......Page 127
Policy Issues......Page 129
Conclusion......Page 131
Notes......Page 132
2. Intellectual Property and Entrepreneurship......Page 140
3. The Multi-invention (Systemic Innovation) Context......Page 142
4.1. Proprietary Use (No Licensing)......Page 145
4.2. \"Design Freedom\" (Defensive) Patent Strategies......Page 146
4.3. Royalty Generation Strategies......Page 147
5. Entrepreneurship and Patent Strategy in Multi-invention Contexts......Page 148
5.1. Integrated Modes......Page 149
CROSS-LICENSING IN ELECTRONICS AND SEMICONDUCTORS......Page 150
AT&T\'S CROSS-LICENSING PRACTICES......Page 151
IBM\'S CROSS-LICENSING PRACTICES......Page 153
LICENSING PRACTICES AT TEXAS INSTRUMENTS......Page 154
THE FORMATION OF RCA......Page 156
5.2. Nonintegrated Modes......Page 157
SYSTEM ON A CHIP (SOC) AND ARM, LTD.......Page 158
COMPONENTIZATION AT KENTRON TECHNOLOGIES......Page 159
6. Conclusion......Page 160
Notes......Page 161
References......Page 164
1. Introduction: value and the stages of intellectual property (IP)......Page 168
2. Estimating value at different stages......Page 171
3. Quantifying the adjustment......Page 175
4. Implications and conclusions......Page 178
References......Page 179
9. Standards Setting and Antitrust David J. Teece and Edward F. Sherry......Page 182
A. DIFFERENT TYPES OF STANDARDS......Page 183
1. Formal Standards Versus De Facto Standards......Page 186
2. Standards Versus Regulations......Page 187
B. A CASE STUDY: REFORMULATED GASOLINE......Page 189
A. STANDARDS, INTELLECTUAL PROPERTY, AND MARKETS......Page 196
B. STANDARDS SETTING AND DIVERGENT ROLES......Page 198
C. PATENTED STANDARDS AND SOCIAL EFFICIENCY......Page 200
A. THE CHOICE OF STANDARDS: DIVERGENT ROLES AND DIVERGENT BELIEFS......Page 203
B. THE CHOICE OF STANDARDS: Ex ANTE VERSUS Ex POST ASSESSMENT......Page 205
C. STANDARDIZATION, LOCK-IN, AND OPPORTUNISM......Page 207
D. LIMITATIONS OF THE \"HOLD-UP\" CONCERN......Page 208
E. \"MANIPULATION\" OF STANDARDS: ACTIVE AND PASSIVE CONDUCT......Page 210
1. Rules Constraining the SSO Itself......Page 211
2. Rules Affecting Participants......Page 212
3. Participation Constraints......Page 213
1. Search......Page 214
2. Disclosure......Page 217
1. The \"One Patent, One Standard\" Problem......Page 222
2. \"Royalty-Free\" and \"Reasonable Terms\"......Page 223
3. \"Reasonable Terms\": When Announced?......Page 224
4. \"Reasonable\" Terms: How Determined?......Page 226
5. Antitrust Remedies......Page 228
6. \"Non-Discriminatory\" Terms......Page 229
D. PENDING PATENT APPLICATIONS......Page 233
1. Non-Disclosure Does Not Equal Lack of Knowledge......Page 235
2. Public Policy Regarding Disclosure of Pending Patent Applications......Page 238
E. THE NEED FOR CLARITY......Page 239
F. SANCTIONS FOR NON-COMPLIANCE......Page 242
1. The Social Costs of Delay......Page 244
2. Consortia, Organizational Structure, and Efficiency......Page 245
C. RESTRICTIONS ON PARTICIPATION......Page 246
D. ADOPTION OF IMPLICATED STANDARDS......Page 250
E. ANTITRUST INTERVENTION AND CLARITY......Page 251
F. PROBLEMS WITH \"ONE SIZE FITS ALL\" POLICIES......Page 254
CONCLUSION......Page 256
APPENDIX......Page 258
WHAT IS A TRADEMARK?......Page 264
What Constitutes an Acceptable Trademark?......Page 265
A Trademark Is Not the Same as a Trade Name or Brand......Page 266
A Trademark Is Not the Same as Goodwill......Page 267
Why Do We Care about Trademarks and Why Are They Needed?......Page 268
How Does One Obtain a Trademark?......Page 269
How Are Trademarks Protected and How Can They Be Damaged?......Page 270
Trademarks and the Internet......Page 271
Principles of Licensing......Page 272
Market Approach......Page 274
CONCLUSION......Page 276
NOTES......Page 277
REFERENCES......Page 278
Part III: ORGANIZING RESEARCH AND DEVELOPMENT......Page 280
1. Introduction......Page 282
2.1. Uncertainty......Page 283
2.3. Cumulative nature......Page 284
2.7. lnappropriability......Page 285
3.1. Monopoly power......Page 286
3.2.1. Bureaucratic decision making.......Page 289
3.2.3. Principal-agent distortions.......Page 291
3.3. Scope......Page 292
3.4. Vertical integration......Page 293
3.5. Organizational culture and values......Page 294
3.7. Assessment......Page 296
4. Distinctive governance modes (Archetypes)......Page 297
4.1. The individual inventor and the stand-alone laboratory......Page 299
4.2. Multiproduct. integrated, hierarchical firms......Page 300
4.3. High flex \"Silicon Valley\" -type firms......Page 301
4.4. Virtual corporations......Page 303
4.5. Conglomerates......Page 304
5. Matching innovation and organizational archetypes43......Page 305
5.1. Autonomous innovation......Page 306
5.2. Systemic innovations......Page 308
6. Conclusions......Page 310
References......Page 311
1. OVERSEAS RAND D EXPENDITURES: 1960-1980......Page 314
II. FACTORS INFLUENCING THE PERCENTAGE OF A FIRM\'s RAND 0 EXPENDITURES CARRIED OUT OVERSEAS......Page 315
III. OVERSEAS RAND D: MINIMUM ECONOMIC SCALE AND RELATIVE COST......Page 317
IV. OVERSEAS RAND D: NATURE OF WORK AND RELATION TO DOMESTIC RANDD......Page 319
V. CONCLUSIONS......Page 320
NOTES......Page 321
REFERENCES......Page 323
The \'Serial\' Model......Page 324
Parallel (Simultaneous) Model......Page 325
Vertical Linkages......Page 327
Horizontal Linkages......Page 328
ORGANIZATIONAL IMPLICATIONS: CO-OPERATION VERSUS INTEGRATION......Page 329
REFERENCES......Page 330
14. Strategic Alliances and Industrial Research David C. Mowery and David J. Teece......Page 332
EXTERNAL SOURCING OF R&D......Page 334
International Strategic Alliances......Page 336
Precommercial Research Consortia......Page 340
University-Industry Research Collaboration......Page 341
CONCLUSION......Page 343
Notes......Page 345
References......Page 347
Outsourcing may make you more flexible. But it could also undermine your ability to innovate.......Page 352
What gives the virtual company its advantage? In essence, incentives and responsiveness.......Page 353
The Case of Industry Standards......Page 354
The very reliance oj virtual companies on partners, suppliers, and other outside companies exposes them to strategic hazards.......Page 355
Matching Organization to Innovation......Page 356
The popularity oj networked companies and decentralization arises, in partJrom observations over a time horizon that isfar too short.......Page 358
16. Mitigating Procurement Hazards in the Context of Innovation John M. de Figueiredo and David J. Teece......Page 360
1. Introduction......Page 361
2. Background......Page 362
Theoretical Antecedents......Page 365
Relevance for Strategic Management......Page 367
Out-Sourcing and Competitive Advantage: Key Components and Pacing Technology at the Frontier5......Page 368
Technological Control at or Behind the Frontier......Page 371
Guarding Technological Capabilities......Page 372
Constellations of Safeguards......Page 373
Vertical Integration, Divestiture and Credible Commitments......Page 377
Acknowledgements......Page 380
References......Page 381
Part IV: THE MULTINATIONAL ENTERPRISE......Page 384
I. INTRODUCTION......Page 386
II. A THEORY OF MULTINATIONAL ENTERPRISE......Page 387
III. THE R&D AND TECHNOLOGY TRANSFER ACTIVITIES OF MULTINATIONAL FIRMS......Page 401
IV. MNEs AND ECONOMIC DEVELOPMENT: ISSUES RELATING TO THE CHOICE OF TECHNIQUE......Page 405
V. CONCLUSION......Page 417
NOTES......Page 418
REFERENCES......Page 419
Relative Efficiency Properties of Markets and Hierarchies......Page 422
Intermediate Product Markets and Vertical Direct Foreign Invesbnent......Page 423
Potential Anticompetitive Consequences of Multinational Enterprise......Page 429
Conclusion......Page 433
References......Page 434
19. Multinational Enterprise, Internal Governance, and Industrial Organization David J. Teece......Page 438
I. Monopoly vs. Efficiency Interpretations of the Multinational Enterprise......Page 440
II. Host-Country Controls......Page 441
REFERENCES......Page 442
1. Introduction and background......Page 444
2. A transactions cost perspective of the multinational enterprise......Page 446
3. International production and multinational enterprise......Page 448
4.1. The transactions cost properties of the horizontally integrated multinational enterprise......Page 451
4.2. The transactions cost properties of vertically integrated multinational enterprises......Page 454
4.3. Evidence......Page 457
4.4. Dynamic considerations......Page 459
4.5. Implications for export competitiveness......Page 460
5. Transactions cost analysis of multinational enterprise-host country relations......Page 461
References......Page 466
Authors......Page 470
The Resource Based Theory of the Firm......Page 471
Penrose and the Theory of Dynamic Capabilities......Page 473
Other Growth Issues and the Penrose Effect......Page 475
Entrepreneurship, Enterprise Design, and the Role of Markets......Page 476
Dynamic Capabilities, Resources and Competitive Advantage: Implications for MNEs......Page 479
Acknowledgements......Page 483
Endnotes......Page 484
References......Page 486