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Science and the Market for Technology

Publication ,  Journal Article
Arora, A; Belenzon, S; Suh, J
Published in: Management Science
October 1, 2022

Well-functioning markets for technology (MFT) allow inventors to sell their inventions to others that may derive more value from them. We argue that the growing use of science in inventions enhances MFT. Science-based inventions have higher gains from trade and lower transaction costs. This relationship is amplified in equilibrium because science-based inventions are also likely to feature smaller inventors with a greater propensity to trade. Using large-scale data, we show that patents citing science are more likely to be traded, especially for novel patents and for smaller inventors. We conclude that the growing use of science in invention is beneficial by encouraging the expansion of MFT and supporting a division of innovative labor.

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Published In

Management Science

DOI

EISSN

1526-5501

ISSN

0025-1909

Publication Date

October 1, 2022

Volume

68

Issue

10

Start / End Page

7176 / 7201

Related Subject Headings

  • Operations Research
  • 46 Information and computing sciences
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences
 

Citation

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Arora, A., Belenzon, S., & Suh, J. (2022). Science and the Market for Technology. Management Science, 68(10), 7176–7201. https://doi.org/10.1287/mnsc.2021.4268
Arora, A., S. Belenzon, and J. Suh. “Science and the Market for Technology.” Management Science 68, no. 10 (October 1, 2022): 7176–7201. https://doi.org/10.1287/mnsc.2021.4268.
Arora A, Belenzon S, Suh J. Science and the Market for Technology. Management Science. 2022 Oct 1;68(10):7176–201.
Arora, A., et al. “Science and the Market for Technology.” Management Science, vol. 68, no. 10, Oct. 2022, pp. 7176–201. Scopus, doi:10.1287/mnsc.2021.4268.
Arora A, Belenzon S, Suh J. Science and the Market for Technology. Management Science. 2022 Oct 1;68(10):7176–7201.

Published In

Management Science

DOI

EISSN

1526-5501

ISSN

0025-1909

Publication Date

October 1, 2022

Volume

68

Issue

10

Start / End Page

7176 / 7201

Related Subject Headings

  • Operations Research
  • 46 Information and computing sciences
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences