Good news for licensing programs: licensing improves overall company value


Though not specifically looking at IP, in 1997 Su Chan, John Kensinger, Arthur Keown and John Martin sought to determine if strategic alliances create value. Research undertaken by Su Chan, John Kensinger, Arthur Keown and John Martin which examined market reactions to alliances.

The group measured the size of firm, the industry sector, high-tech versus low-tech alliances, company objectives (related industry alliances and firm performance to determine if these were factors that affected value. The authors’ conclusions?

  • Horizontal alliances create more value than non-horizontal alliances;
  • Technical alliances create more value than marketing and promotion alliances; and
  • Companies which enter into alliances “exhibit superior operating performance relative to their industry peers.”


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