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The bumpy road of technology partnerships: Understanding causes and consequences of partnership mal-functioning

Author Info

  • Lokshin, Boris

    ()

    (UNU-MERIT, and Maastricht University)

  • Hagedoorn, John

    ()

    (UNU-MERIT, and Maastricht University)

  • Letterie, Wilko

    ()

    (School of Business and Economics, Maastricht University)

Abstract

Research on technological partnerships has traditionally sought explanation of their high failure rates in partner characteristics and relationship features. This study introduces the notion of a 'bumpy road' in technology partnerships which refers to undesired outcomes such as 'partnership mal-functioning' and 'instability' to the degree to which innovation activities are hampered. We explain how firm-level strategies can reduce the probability of a 'bumpy road' in partnerships. We also assess the impact of this 'bumpy road' on innovative performance. We find that firms that excel in diversification of external activities (in terms of different types of partners) perform best. Moreover, a persistent product oriented innovation strategy geared at developing new products, new markets, or higher product quality will yield more stable partnership outcomes. Our results confirm that engagement in partnerships is beneficial for innovative performance. However, firms that experienced a 'bumpy road' in their technological partnerships have to pay a price in terms of a negative effect on their innovative performance

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Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 057.

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Date of creation: 2010
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Handle: RePEc:unm:unumer:2010057
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Keywords: R&D Collaboration; Technological performance; Innovation; Alliance failure;

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Find related papers by JEL classification:
  • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
  • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
  • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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Cited by:

  1. Taran Thune & Magnus Gulbrandsen, 2014. "Dynamics of collaboration in university–industry partnerships: do initial conditions explain development patterns?," The Journal of Technology Transfer, Springer, vol. 39(6), pages 977-993, December.
  2. Enrico Guzzini & Donato Iacobucci, 2014. "The dark side of R&D collaborations," Working Papers 1405, c.MET-05 - Centro Interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
  3. René Belderbos & Martin Carree & Boris Lokshin & Juan Fernández Sastre, 2015. "Inter-temporal patterns of R&D collaboration and innovative performance," The Journal of Technology Transfer, Springer, vol. 40(1), pages 123-137, February.
  4. Hottenrott, Hanna & Lopes-Bento, Cindy, 2014. "R&D partnerships and innovation performance: Can there be too much of a good thing?," DICE Discussion Papers 154, Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf.
  5. Schøtt, Thomas & Jensen, Kent Wickstrøm, 2016. "Firms’ innovation benefiting from networking and institutional support: A global analysis of national and firm effects," Research Policy, Elsevier, vol. 45(6), pages 1233-1246.
  6. Amankwah-Amoah, Joseph & Durugbo, Christopher, 2016. "The rise and fall of technology companies: The evolutional phase model of ST-Ericsson's dissolution," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 21-33.
  7. Małgorzata Stefania Lewandowska, 2014. "Innowacje otwarte polskich przedsiębiorstw," Gospodarka Narodowa, Warsaw School of Economics, issue 2, pages 53-80.

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