Technology Strategies in the Knowledge Economy: The Licensing Activity of Himont

Author:

Cesaroni Fabrizio1

Affiliation:

1. St. Anna School of Advanced Studies, Laboratory of Economics and Management, Piazza Martiri della Libertà 33, 56127 Pisa, Italy

Abstract

The exchange of technologies and technological knowledge — through joint-ventures, partnerships, licensing, cross-licensing, R&D contracts — and the upsurge of markets for technology are main features of the "knowledge-based" economy. Accordingly, companies are gradually changing their aptitude towards technology trading and exchange. This paper discusses the extent of technology licensing in chemicals, and considers the licensing strategies adopted by large chemical companies. Specifically, by analysing the case of Himont — widely involved in licensing its process technology — this paper explores the motivations for technology licensing, the managerial solutions that Himont adopted for licensing its technology, and the implications of this strategy in terms of antitrust policy. One of the main results emerging from the analysis is the role of external technology suppliers. By increasing the potential competition in the downstream product market, they create incentives for incumbent firms to license-out their technologies, and earn additional profits in the market for technology.

Publisher

World Scientific Pub Co Pte Lt

Subject

Management of Technology and Innovation,Strategy and Management,Business and International Management

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