International Licensing of Technology: An Empirical Study of the Differences between Licensee and Non-Licensee Firms

Despite the increasing importance of international licensing as a source of new technology for many firms, limited research has investigated the differences between licensee and non-licensee firms’ characteristics. An analysis of a sample of Australian firms indicates that licensee firms are significantly different from non-licensee firms along management characteristics, management's perceptions of competition in their industry, and of the costs and benefits of licensing. Surprisingly, no statistically significant differences were found between the two types of firms regarding internal capabilities. Implications from these findings are discussed.