Implementation Steps for Successful Out-Licensing
OVERVIEW:In addition to acquiring external technology, many industrial firms now seek to license their technology out to external partners. These technology out-licensing activities promise important monetary and non-monetary benefits that allow firms to profit from technologies beyond their traditional business lines. Some pioneering companies achieve major benefits from active out-licensing programs. Most other firms, however, experience managerial difficulties in implementing active out-licensing strategies. This article builds on expert interviews with managers in 30 industrial firms to highlight three organizational approaches for implementing active out-licensing programs: structural organization, project organization, and participatory organization. Based on evidence from the interviews, the article presents a six-step procedure for successfully executing an active out-licensing program.