Merging to licenseinternal vs. external patentee
- Sandonís Díez, Joel
- Faulí Oller, Ramon
Año de publicación: 2003
Número: 17
Tipo: Documento de Trabajo
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.