Abstract: In this paper, the effects of network externalities and technology competition on the innovators licensing strategies are studied. Mainly, there are two different strategies: independent licensing and colluding on the number of licenses. After models for both strategies are developed, analysis is conducted under the environment of network externalities. With the results of analysis, the optimal number of licenses and profits obtained by these two strategies are compared. It shows that innovators with competitive technologies tend to collude on the number of licenses in the licensing market. The tendency does not change even if the network externalities are considered. Compared with the independent licensing strategy, with colluded licensing strategy, it reduces the probability of innovators' licensing and the number of technology licenses.

Key words: network externalities, technology licensing, technology competition, collusion