||The effects of the assign-back provision on R&D -An application of the guidelines of the European Union, the United States and Japan-
17-172018-03 , GRIPS Policy Research Center
We examine the effects on R&D of the assign-back provision in license contracts. When the technical scope of the assign-back is narrow, its expansion decreases investment in the improved technology, but increases that in the original technology. However, when the technical scope is larger than a certain threshold level, its expansion decreases the profit of the licensor of the original technology and reduces the investment in both technologies. Therefore, the licensor would not like to expand the technical scope beyond the threshold. In addition, we apply our result to the guidelines of Japan, the United States, and the European Union.
JEL Classification Codes: C72, D21, O34