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The Control of Technology Alliances: An Empirical Analysis of the Biotechnology Industry

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Author Info
Lerner, Josh
Merges, Robert P

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Abstract

The authors examine the determinants of control rights in biotechnology alliances through three case studies and a quantitative analysis. P. Aghion and J. Tirole (1994) argue that control rights will be assigned so as to maximize the value of the final output as long as the R&D firm has sufficient financial resources. Consistent with this framework, the allocation of control rights to the R&D firm increases with the firm's financial resources. The empirical evidence regarding the relationship between control rights and the stage of the project at the time the alliance is signed is more ambiguous. Copyright 1998 by Blackwell Publishing Ltd

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Article provided by Blackwell Publishing in its journal Journal of Industrial Economics.

Volume (Year): 46 (1998)
Issue (Month): 2 (June)
Pages: 125-56
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Handle: RePEc:bla:jindec:v:46:y:1998:i:2:p:125-56

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