This paper studies and compares technology licensing by means of a fixed-fee and licensing by means of a royalty in a Cournot-duopoly market with network externality,where one of the finns has a cost-re- ducing innovation.It is found under the fixed-fee licensing method,that,only when the magnitude of the in- novation is less than the non-drastic innovation,will the innovation firm license its innovation,and the value of license fee is depending on the two firms bargaining game.If licensing is g...