The combination of a firm capability (i.e., ability to generate general purpose technologies) and a market structure condition (i.e., fragmentation of downstream submarkets) may encourage licensing in an industry. That is, the probability of licensing should increase when product markets are...

In an open innovation relationship, the party that owns a key asset enjoys bargaining power that discourages the investments of the other party in the collaboration. We show that these incentives can be restored by conferring on the weak party the power to take decisions during the research...