Fostering the Diffusion of General Purpose Technologies: Evidence from the Licensing of the Transistor Patents

Nagler M, Schnitzer M, Watzinger M


Abstract

How do licensing and technology transfer influence the spread of General Purpose Technologies? To answer this question, we analyze the diffusion of the transistor, one of the most important technologies of our time. We show that the transistor diffusion and cross-technology spillovers increased dramatically after AT&T began licensing its transistor patents along with symposia to educate follow-on inventors in 1952. Both these symposia and the licensing of the patents itself played important roles in the diffusion. A subsequent reduction in royalties did not lead to further increases, suggesting that licensing and technology transfer were more important than specific royalty rates.

Keywords
Patent licensing, Transistor, Innovation



Publication type
Research article (journal)

Peer reviewed
Yes

Publication status
Published

Year
2022

Journal
Journal of Industrial Economics

Volume
70

Start page
838

End page
866

Language
English

ISSN
0022-1821

DOI