University research is increasingly importantfor industrial innovation. Licensing provides an incentive for both faculty andcompanies to undertake the development of federally-funded ideas and theirtransfer to industry. However, skeptics question the effects of licensing onthe conduct of...

This paper presents the results of an empirical test concerning the auction model of Gilbert and Newbery (1982). The study uses data on German companies in order to analyze expenditures for technology licenses. Aside of standard control variables the motives for innovation expenditures are also...