Technology gap, technology competition and MNCs´ technology licensing strategies: A transaction cost theory perspective

Based on transaction cost theory, this paper investigates the relationship between technology capability and MNC´s technology licensing strategies. Using data of international patent licensing happened in China during 2005-2006, this study examine the impact of technology gap on non-exclusive right in licensing contract. And technology competition negatively moderates the relationship between technology gap and licensor´s choice. The results extend technology licensing theory.