An Approach for R&D Partner Selection in Alliances between Large Companies, and Small and Medium Enterprises (SMEs): Application of Bayesian Network and Patent Analysis

The enhanced R&D cooperative efforts between large firms and small and medium-sized enterprises (SMEs) have been emphasized to perform innovation projects and succeed in deploying profitable businesses. In order to promote such win-win alliances, it is necessary to consider the capabilities of large firms and SMEs, respectively. Thus, this paper proposes a new approach of partner selection when a large firm assesses SMEs as potential candidates for R&D collaboration. The first step of the suggested approach is to define the necessary technology for a firm by referring to a structured technology roadmap, which is a useful technique in the partner selection from the perspectives of a large firm. Second, a list of appropriate SME candidates is generated by patent information. Finally, a Bayesian network model is formulated to select an SME as an R&D collaboration partner which fits in the industry and the large firm by utilizing a bibliography with United States patents. This paper applies the proposed approach to the semiconductor industry and selects potential R&D partners for a large firm. This paper will explain how to use the model as a systematic and analytic approach for creating effective partnerships between large firms and SMEs.