Prior studies have extensively discussed firms’ propensity of licensing under different levels of competition. This study clarifies the differences between potential technology competition (PTC) and actual licensing competition (ALC). We investigate the relationship between these two types of competition in the context of Chinese patent licensing landscape, using patent licensing data during 2002–2013. We find that the positive effect of PTC on ALC is contingent upon the nature of licensed patent, such as generality, complexity, and newness. Our findings help scholars and managers interested in licensing to understand and monitor the likelihood of licensing competition. Policy implications are presented at the end of this study.
- Potential technology competition
- Actual licensing competition
- Technology attributes