A hidden cost of strategic alliances under Schumpeterian dynamics

Jeho Lee, Seung Ho Park, Young Ryu and Yoon-Suk Baik

Research Policy, 2010, vol. 39, issue 2, 229-238

Abstract: 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.

Keywords: Strategic; alliances; Innovation; Schumpeterian; competition; Increasing; returns (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:39:y:2010:i:2:p:229-238

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