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Hold-up in Ventures for Technology Transfer

[ Vol. 4 , Issue. 1 ]


Klaus Spremann   Pages 47 - 53 ( 7 )


Entrepreneurs and Investors found ventures for transferring technology and bringing it closer to the market. Focussing on a situation in which the investor exercises hold-up at the disadvantage of the entrepreneur, this paper works on three points: We identify (1) conditions which make hold-up possible, and discuss (2) measures which help entrepreneurs to protect themselves against hold-up. (3) The balance of powers in a venture is related to returns to scale. Overall, the paper contributes to the theory of small-seized firms which are exposed to high uncertainties including behavioural opportunism.


Agency theory, hold-up, incomplete contracts, innovation, entrepreneur, knowledge, investor, technology risk, twosided markets, venture risk.


University of St. Gallen, School of Finance, Swiss Institute of Banking and Finance, Rosenbergstr 52, 9000 St. Gallen

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