Identification of Technology Transfer Options Based on Technological Characteristics

Traditionally, licensing has been the dominant channel for the commercialization of the intellectual property of public sectors. However, performing the cooperative R&D and formation of spin-off companies has become an alternative route for technology transfer. With plenty of options by which public research institutes (PRI) can employ technology transfer, one should determine first the appropriate channel for the transfer in order to establish the appropriate strategy. This paper builds a theoretical framework to match the mode of technology transfer with two key conditions: (1) absorptive capacity of recipient firms and (2) dependence on complementary assets. The theoretical discussion elucidates that the combination of lower level of absorptive capacity and less dependence on complementary assets favor the creation of new firms as a mode of technology transfer; the opposite combination favors cooperative research and development (R&D), and the in-between case supports licensing as an appropriate mode of transfer. Based on the theoretical framework, we analyzed the case of chemical industry in Korea utilizing the concept of patent portfolio analysis.