The Price of a Patent License

Toke Reichstein has an article in Journal of Industrial and Business Economics on patent licensing specifically focusing on the remuneration structure of license agreements. The question is whether flexibility of the contract and the market and technological uncertainty associated with the contract impacts the negotiated price expressed by upfront fee.

As patent licensing has become the prime driver of technology trade, understanding the rationales behind a properly-defined payment structure of the agreements is essential. Specifically, among the other remuneration components, upfront fees are critical in license negotiations since they imply a significant initial investment by the licensee and represent a source of liquidity for the licensor. We investigate how contractual flexibility, market uncertainty and technical uncertainty shape upfront fees from the licensee’s perspective. Upfront fees are shown to be positively associated with contractual flexibility and market uncertainty, while technical uncertainty is positively associated with upfront fees only if the license warrants contractual flexibility to the licensee. Licensees therefore do not necessarily see uncertainty as a negative attribute of a patent license, but rather as a potential value, above all if in presence of contractual flexibility.


Toke Reichstein at Novo Nordisk Innovation In Action case competition

Novo Nordisk organize a yearly case competition in which a heterogeneous group of individuals are grouped into 8 teams of 6 individuals and are asked to tackle one of Novo Nordisk pressing challenges. The heterogeneity among team members provides a vibrant atmosphere and a dynamic environment with lots of discussions a on potential solutions to the case posed. This year the topic of the challenges regards a pharmacological solution to the health risk of obesity. Participants are asked to reconsider how we think about obesity and come up with a solution on how to convince medical doctors to treat obesity pharmacologically. This year, Prof. toke Reichstein participates as a member of a panel that guides the students through the process of coming up with solutions.

Do You Have the Nerve? Fail Forward to Success

Friday the 13th of November, Copenhagen School of Entrepreneurship (CSE), CBS’ Entrepreneurship Platform and the Mærsk Mc-Kinney Møller Chair of Entrepreneurship at CBS welcome students and staff to an exciting Failure & Entrepreneurship event under the heading: Do You Have the Nerve? Fail Forward to Success.

Read more and see the program at:

Mirjam van Praag new member of the Academy of Europe

The Academia Europaea is a functioning European Academy of Humanities, Letters and Sciences, composed of individual members. Membership is by invitation.

Invitations are made only after peer group nomination, scrutiny and confirmation as to the scholarship and eminence of the individual in their chosen field. Election is confirmed by the Council of the Academia.

Members are drawn from across the whole European continent, not only western Europe. Members also include European scholars who are resident in other regions of the world. Current membership stands at around 2,800. Amongst them are fifty-two Nobel Laureates, several of whom were elected to the Academia before they received the prize.

Read more about the academy:

Watch the presentation by Mirjam van Praag at the Entrepreneurial Day

At the Copenhagen School of Entrepreneurship Entrepreneurial Day 24 September, Mirjam van Praag gave a presentation to app. 300 students, guests and faculty.

Watch the presentation here.

The Residence Week for Entrepreneurship Scholars

The Residence Week for Entrepreneurship Scholars is an innovative initiative on the part of Saul Estrin (London School of Economics) and Mirjam van Praag (Copenhagen Business School), organised for the first time in the summer of 2012 in order to bring together leading figures in the field of economics of entrepreneurship. Following the success of the three previous years and due to popular demand for its repetition, the 4th Residence Week for Entrepreneurship Scholars took place June 29 – July 3, 2015 in Oxford with the generous support of the Templeton Education and Charity Trust.

What differentiates the Residence Week from other conferences is the tradition of having no preordained programme. This ensures an informal setting that many participants list as a unique advantage of the event. During the day people work on their own projects or collaborate with old and new colleagues. Formal presentations are only organised after 4pm, allowing scholars to create the ideal balance between individual research and sharing ideas.

This year, the diversity of the topics presented during the afternoon sessions reflected the broad spectrum of the field of entrepreneurship research, touching upon for instance social and hybrid entrepreneurship, equity (crowd)funding, decision-making styles, and the impact of human capital on start-up performance. The presentations conveyed new insights about the behaviour of social and commercial entrepreneurs, corporate managers, and the importance of venture capital and other types of equity investors.

Participants from INO were: Mirjam van Praag, Toke Reichstein, Orsola Garofalo and Vera Rocha.