Its value, the I !censor will be able to demand a reasonable Increase In royalties for {the product) where this modi­ fication occurs"<27). This situation also occurs when Improvements ar~ brought from third firms: "the I !censor has the right to receive the usual engineering fees that apply to plant or machinery acquired from or Improved by third partles"C28>. 26. Contract for the manufacture of articles of flbrocement 21. We also found these clauses In agreements for the manufacture of chemical products, electrical materials for construction, parts for concrete mixers, building wood and construction equipment. Anot~er excerpt w~ can quote Is the followlng:"The granter of the licence will hold an excluslve,dlvlslble and continual licence covering all Improvements patented by the licensee and not communicated by him to the licensor. This licence may be used for the licensor's profit, both In his territory and In the rest of the world". (Agreement for the manufacture of construction glass>. 28. Contract for the Provision of a patent to Instal I an expanded clay plant. 17 These. are clear methods of appropriation, and are found In most of the contracts, which lead to the following reflections: If It Is a local firm which has such a cla_use Incorporated In one of Its contracts. It Is logical that during the period when It Is In force It will not Invest In research and development, or will minimise Investment In the area of the licence, since the results can be appropriated by the licensor and/or the original royalties will be Increased especially when the total sates are subject to the contract, and the overal I operation of the firm Is Included. The consequences of this sort of situation are quite obvious: Internal Innovative activity Is discouraged and the 
**Analysis**
The text appears to be discussing the implications of licensing agreements on innovation and investment in a firm. It highlights how certain clauses in these agreements can discourage internal innovative activity and lead to a lack of investment in research and development. This suggests that the text is related to the economic development and industry sectors.

**Category**
Industry, Science and Technology