COMPENSATION IN INTERNATIONAL LICENSING AGREEMENTS

This study examines licensing agreements between independent firms bas ed on their compensation structures. We first suggest that a licensor' s ability to that or and influence foreign licensees is related to the type of compensation used in structuring relationship, Next, we ident ify a set of factors, related to host country conditions where the tec hnology is licensed, stage in the technology life cycle, and licensor firm characteristics that impact the choice between different compensa tion structures. Empirical findings based on a survey of U.S. firms ge nerally support the hypotheses proposed in this study.