Competition has pervasive and long-lasting effects on economic performance by affecting economic actors’ incentive structures, by encouraging their innovative activities, by stimulating technology spillovers, and by selecting more efficient firms from less efficient ones over time. A...

This paper examines the firm level determinants of the incidence of cross-licensing. It develops a simple stochastic theory explaining such incidence, and confirms its implications based on new dataset of licensing contracts by Japanese firms. Among major findings are: (1) Licensing probability...