This paper considers the impact of the
intellectual property (IP) system on the timing
of cooperation/licensing by start-up technology
entrepreneurs. If the market for technology
licenses is efficient, the timing of licensing
is independent of whether the patent has already
been granted, and productive efficiency
considerations will determine license timing
(which likely will be as early as possible after
invention). In contrast, the need for disclosure
of unprotected knowledge on the part of the
inventor, asymmetric information between the
licensor and potential licensees, or search
costs may retard efficient technology transfer.
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