Technology licensing is becoming an area of distinct competitive advantage and an increasing number of companies consider it as an added dimension to their own R&D.  The commercial benefits of technology licensing include:

Faster to Market

Pursuing a strategy of technology acquisition can provide access to already established or readily available technology and products. Companies can quickly enter new and emerging markets and can get extensive technical and commercial assistance from technology developers without having to pay for it in advance.

Lower Risk

Acquiring technology by licensing has a lower risk than carrying out R&D which can require a considerable investment before any return is obtained. Developing new products can be risky because they do not always succeed in the market. By acquiring technology developed externally you can gain access to products and technology which are already proven in another market. The only uncertainty is in transferring them to your market.

Technical Assistance

It is quite normal for a licensor to provide ongoing technical and commercial assistance via staff training, site visits and consultation. It may also be possible to acquire rights to ongoing improvements made to the technology by the licensor.

Open Innovation

Technology acquisition can be particularly effective when combined with a company's current technology and product development through R&D.  This can create new product, services and process opportunities from sources external to the company.

Cost Effective

Technology acquisition can also provide new products and cost effective manufacturing solutions for subcontractors, and companies suffering from competition based in low-cost countries.