Equity Links and Information Acquisition in Biotechnology Alliances

Darren Filson () and Rosa Morales
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Rosa Morales: Claremont Graduate University

Claremont Colleges Working Papers from Claremont Colleges

Abstract: We use a simple model of collaborative innovation to structure an empirical analysis of minority equity links in biotechnology alliances between clients and R&D firms. In the model, an equity link is an investment in information acquisition: it improves the ability of the client to learn about the R&D firm’s ability and the alliance project’s quality. The model generates several testable hypotheses about how the R&D firm’s project characteristics and previous alliances affect the use of equity links in new alliances. We test the hypotheses using a large data set of biotechnology alliances and find empirical support.

Keywords: alliance; collaboration; integration; joint venture; technological change (search for similar items in EconPapers)
JEL-codes: L14 L22 O32 (search for similar items in EconPapers)
Date: 2001-08
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Related works:
Journal Article: Equity links and information acquisition in biotechnology alliances (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:clm:clmeco:2001-24

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