Which of the following factors does not contribute to the attractiveness of licensing provides as a means of exploiting an innovation:
A)The innovating firm possesses most of the complementary resources needed to exploit the innovation
B)Patent are strong
C)The potential for the innovation to enhance the performance of existing products has been clearly demonstrated
D)The innovation has potential applications is several different industries

Question

Quizplus · Accepted Answer

The statement in option A indicates that the innovating firm is well-equipped to exploit the innovation, which makes licensing less attractive as a means of exploiting the innovation. The other options - B, C, and D - all contribute to the attractiveness of licensing. Strong patents protect the innovation and provide a competitive advantage, a clear demonstration of potential to enhance existing products and ideas for applications in multiple industries means that there is a wider target market for potential licensees, which makes the innovation more attractive to license out.

Which of the Following Factors Does Not Contribute to the Attractiveness