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The Effect Of Technological Environment And Competitive Strategy On Licensing Decisions, Matthew H. Roy, Sanjiv S. Dugal

WCBT Faculty Publications

The expectation that firms that have a high differentiation strategy will also have low levels of licensing is not supported. For business units (BU) with products in the growth stages, the competitive strategy of the BU did not significantly affect licensing decisions. The results are not too surprising when one considers new technological advancements and global competition. A company may perceive its technological advantage as transitory and expect rapid imitation by competitors. In such a case, the company might want to license the innovation as quickly as possible to gain global acceptance. It is shown that when products mature, the …