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The advantage of possessing some critical knowledge or technology may be limited by the ability of competitors to acquire the technology from other source, so markets for technology can also decrease the relative importance of technology as a source of distinct advantage.
For large technology based-firms, markets for technology boost the strategy space and firms can choose to license their technology rather than only depend on internal exploitation. The licensing decision is propelled by the interaction of the profit dissipation effect from licensing. This result from increased competition and the revenue effect from licensing which is caused by economic compensation paid by the license for accessing to the technology...
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