Not invented here: Knowledge transfer and technology licensing from a German public research organization

Using a new dataset encompassing more than 2,000 inventions made by Max Planck Society researchers from 1980 to 2004, we study the effects of information asymmetry and imperfect knowledge transfer on the licensing and successful commercialization of technologies from public research, distinguishing among types of licensees as well as invention and inventor characteristics. Technologies licensed to foreign firms and spin-offs are less often commercialized, while collaborative inventions are more often commercialized. Senior scientists are more successful in licensing, but their inventions are less often commercialized. Our findings suggest a specific role of spin-offs in transferring technologies invented by senior scientists.