Opt-out options in new product co-development partnerships

We study three contractual arrangements—co-development, licensing, and co-development with opt-out options—for the joint development of new products between a small and financially constrained innovator firm and a large technology company, as in the case of a biotech innovator and a major pharma company. We formulate our arguments in the context of a two-stage model, characterized by technical risk and stochastically changing cost and revenue projections. The model captures the main disadvantages of traditional co-development and licensing arrangements: in co-development the small firm runs a risk of running out of capital as future costs rise, while licensing for milestone and royalty (M&R) payments, which eliminates the latter risk, introduces inefficiency, as profitable projects might be abandoned. Counter to intuition we show that the biotech's payoff in a licensing contract is not monotonically increasing in the M&R terms. We also show that an option clause in a co-development contract that gives the small firm the right but not the obligation to opt out of co-development and into a pre-agreed licensing arrangement avoids the problems associated with fully committed co-development or licensing: the probability that the small firm will run out of capital is greatly reduced or completely eliminated and profitable projects are never abandoned.

Simulation studies on the magnetization of (RE)BCO bulk superconductors using various split-coil arrangements

Simulation studies were conducted on the magnetization of (RE)BCO (RE-Ba-Cu-O, where RE represents a rare earth element) bulk superconductors using various split-coil arrangements by solving the critical state equation using the commercial software FlexPDE. A pair of coaxial coils of identical size is identified as an optimum arrangement for practical magnetization at 77K by the zero-field cooling technique. In general, the magnetization process is likely to be most effective when the outer radius of the coils lies between 100% and 50% of the sample radius. A relatively large coil pair is necessary for samples with either a smaller aspect ratio or larger values of J c0. Two different regimes of flux penetration are found to be involved in the magnetization process. For a sufficiently small sample, the penetration field is determined by flux propagation from beneath the coil to the centre of the sample; for a sufficiently large sample, the definitive propagation route is from beneath the coil to the periphery of the sample. Effective split-coil magnetization occurs only in the former regime, and both penetration regimes are completely different from that involved in the solenoidal-coil magnetization process. © 2012 IOP Publishing Ltd.

Oxygen vacancy defects in Ta2O5 showing long-range atomic re-arrangements

The structure, formation energy, and energy levels of the various oxygen vacancies in Ta2O5 have been calculated using the λ phase model. The intra-layer vacancies give rise to unusual, long-range bonding rearrangements, which are different for each defect charge state. The 2-fold coordinated intra-layer vacancy is the lowest cost vacancy and forms a deep level 1.5 eV below the conduction band edge. The 3-fold intra-layer vacancy and the 2-fold inter-layer vacancy are higher cost defects, and form shallower levels. The unusual bonding rearrangements lead to low oxygen migration barriers, which are useful for resistive random access memory applications. © 2014 AIP Publishing LLC.