Includes bibliographical references (p. 24-25).

Includes bibliographical references (p. 25-32).

"This article is based on Microsoft Secrets: How the World's Most Powerful Software Company Creates Technology, Shapes Markets and Manages People (New York: The Free Press/Simon & Schuster, 1995), by Michael A. Cusumano and Richard W. Selby"--P. 2.

We present a model of research joint ventures in which if firms have highly complementary skills and resources then they prefer to cooperate in areas where the technology is highly appropriable, as in applied research. The model also indicates that large firms have a greater incentive to...