A hidden cost of strategic alliances under Schumpeterian dynamics
Recently, proponents of interfirm R&D collaboration have emphasized its benefits. We develop a dynamic model of Schumpeterian competition to examine whether such collaboration is indeed beneficial in the long run. We find that interfirm R&D collaboration is more likely to be a losing strategy when partners form alliances mainly to reduce R&D costs. On the other hand, partners collaborating to seek synergy by accessing each other's complementary assets/capabilities are more likely to be successful. Our study suggests that firms should not use strategic alliances merely to reduce R&D costs in a catch-up situation or to avoid head-on competition with rivals.
Year of publication: |
2010
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Authors: | Lee, Jeho ; Park, Seung Ho ; Ryu, Young ; Baik, Yoon-Suk |
Published in: |
Research Policy. - Elsevier, ISSN 0048-7333. - Vol. 39.2010, 2, p. 229-238
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Publisher: |
Elsevier |
Keywords: | Strategic alliances Innovation Schumpeterian competition Increasing returns |
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