Equity links and information acquisition in biotechnology alliances
AbstractWe use a simple model of collaborative innovation to structure an empirical analysis of minority equity links in biotechnology alliances between clients and R&D firms. In the model, an equity link is an investment in information acquisition: it improves the ability of the client to learn about the R&D firmâs ability and the alliance projectâs quality. The model generates several testable hypotheses about how the R&D firmâs project characteristics and previous alliances affect the use of equity links in new alliances. We test the hypotheses using a large data set of biotechnology alliances and find empirical support.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 59 (2006)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/jebo
Other versions of this item:
- Darren Filson & Rosa Morales, 2001. "Equity Links and Information Acquisition in Biotechnology Alliances," Claremont Colleges Working Papers 2001-24, Claremont Colleges.
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
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