Cross licensing of complementary technologies

Chaim Fershtman*, Morton I. Kamien

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


We consider the case where the introduction of a new product requires the development of two distinct complementary technologies. A firm can seek to either develop both technologies, or one of them and engage in a cross licensing with another firm that has developed the complementary technology. We focus on the interdependence between the innovation race and the cross licensing game, i.e., how the potential continuation of the race affects the cross licensing terms and how the possibility of cross licensing affects the pace of the innovation race.

Original languageEnglish
Pages (from-to)329-348
Number of pages20
JournalInternational Journal of Industrial Organization
Issue number3
StatePublished - Sep 1992


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