market competitors. We consider an independent lab as well as a research joint venture. We
show that (1) demands are interdependent and hence the standard price mechanism is not
the profit-maximizing licensing strategy;(2) the seller's incentives to develop the innovation
may be excessive;(3) the seller's incentives to disseminate the innovation typically are too
low;(4) larger ventures are less likely to develop the innovation, and more likely to restrict its …