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Joint venture research and development activity: an analysis of the international biotechnology industry


  • Richards, Malika
  • De Carolis, Donna Marie


The research question we investigate is under what conditions will joint ventures engage in research and development (R&D) activity within the context of a global, high-technology environment. To explore this question, we examine the collective impact of initial conditions that influence the presence of R&D activity among joint ventures (JVs) formed in the global biotechnology industry. Our investigation is driven by two streams of research in joint ventures: transaction costs and initial conditions. Specifically, we examine whether business relatedness, cultural relatedness, country risk, and prior joint venture experience are related to R&D activity in joint ventures. Our results show that cultural relatedness and country risk factors do matter when it comes to R&D activity in biotechnology joint ventures. On the other hand, business similarities and prior JV experience between the parents do not seem to be as important as one might expect.

Suggested Citation

  • Richards, Malika & De Carolis, Donna Marie, 2003. "Joint venture research and development activity: an analysis of the international biotechnology industry," Journal of International Management, Elsevier, vol. 9(1), pages 33-49.
  • Handle: RePEc:eee:intman:v:9:y:2003:i:1:p:33-49

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    References listed on IDEAS

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    2. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters,in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87 World Scientific Publishing Co. Pte. Ltd..
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    7. Park, Seung Ho & Kim, Dongcheol, 1997. "Market valuation of joint ventures: Joint venture characteristics and wealth gains," Journal of Business Venturing, Elsevier, vol. 12(2), pages 83-108, March.
    8. Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 361-379, June.
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    Cited by:

    1. repec:spr:manint:v:52:y:2012:i:2:d:10.1007_s11575-012-0136-1 is not listed on IDEAS
    2. Jae-Seung Han & Sang-Yong Lee, 2013. "The impact of technology transfer contract on a firm’s market value in Korea," The Journal of Technology Transfer, Springer, vol. 38(5), pages 651-674, October.
    3. Byung Park, 2010. "What matters to managerial knowledge acquisition in international joint ventures? High knowledge acquirers versus low knowledge acquirers," Asia Pacific Journal of Management, Springer, vol. 27(1), pages 55-79, March.
    4. López-Duarte, Cristina & González-Loureiro, Miguel & Vidal-Suárez, Marta M. & González-Díaz, Belén, 2016. "International strategic alliances and national culture: Mapping the field and developing a research agenda," Journal of World Business, Elsevier, vol. 51(4), pages 511-524.
    5. Choi, Jeongho & Yeniyurt, Sengun, 2015. "Contingency distance factors and international research and development (R&D), marketing, and manufacturing alliance formations," International Business Review, Elsevier, vol. 24(6), pages 1061-1071.
    6. Kim, YoungJun & Vonortas, Nicholas S., 2006. "Technology licensing partners," Journal of Economics and Business, Elsevier, vol. 58(4), pages 273-289.
    7. Bryan, Stephen & Nash, Robert & Patel, Ajay, 2015. "The effect of cultural distance on contracting decisions: The case of executive compensation," Journal of Corporate Finance, Elsevier, vol. 33(C), pages 180-195.
    8. repec:kap:jtecht:v:42:y:2017:i:3:d:10.1007_s10961-016-9505-4 is not listed on IDEAS
    9. Richards, Malika & Yang, Yi, 2007. "Determinants of foreign ownership in international R&D joint ventures: Transaction costs and national culture," Journal of International Management, Elsevier, vol. 13(2), pages 110-130, June.


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