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License 26#
Efforts are focused on developing intellectual property that can be licensed to other manufacturers. This model, therefore, relies not on the realization and utilization of knowledge in the form of products, but attempts to transform these intangible goods into money. This allows a company to focus on research and development. It also allows the provision of knowledge, which would otherwise be left unused and potentially be valuable to third parties.
Examples: Iconic Cases
How they do it: As Bosch investes a lot in research and development of its technologies but don’t create and market full products out of every patent, they monetize these patents by licensing them to partners.
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How they do it: Bayer licensing agreements can range from very comprehensive approaches and multiple assets to focused single asset options in early or later stages of the drug development process. This also includes research alliances under very comprehensive licensing agreements with academic institutes and research centers, whose technologies complement Bayer’s own expertise in our core research areas.
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How they do it: ARM only creates and licences its technology as intellectual property, rather than selling its own physical products. This allows them to focus on specializing on further developing their technology.
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How they do it: In 2010, Toyota licensed its hybrid vehicle technology to Mazda. Mazda leveraged this technology to introduce a hybrid vehicle in 2013 in the Japanese market, based partly on the Toyota Prius hybrid technology.
Learn more about Toyota →
How they do it: Harley Davidson generates a large portion of its revenue with merchandise carrying the Harley Davidson brand. To avoid a negative impact on their brand the company has a distinctive licensing strategy and only accepts products that are in line with their own goals and guidelines for the Harley Davidson brand.
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Below, the top industries for the pattern "License" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 15 firms using this pattern.
Top Industries
Automotive
50% of firms using pattern
50% of firms using pattern
Transportation
36% of firms using pattern
36% of firms using pattern
Information Technology
8% of firms using pattern
8% of firms using pattern
All Industries
Below, the pattern "License" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
Top Co-Occurrences
Integrator
2 pattern co-occurrences
2 pattern co-occurrences
Direct Selling
2 pattern co-occurrences
2 pattern co-occurrences
Reverse Engineering
2 pattern co-occurrences
2 pattern co-occurrences