1. School of Business and Economics TRENDS AND PATTERNS IN (INTERNATIONAL) R&D ALLIANCES, 1970-2006 John Hagedoorn * Department of Organization & Strategy and UNU-MERIT School of Business and Economics Maastricht University

2. Definition R&D alliances refer to cooperation between two or more firms, that remain independent economic agents and organizational entities, that share some of their R&D activities. As such they represent a part of the value chain in the ‘swollen middle’, in between market transactions and hierarchies.

3. source : CATI

5. Advantages and disadvantages of equity alliances (joint ventures) and non-equity (contractual) alliances Advantages of equity alliances (joint ventures): Solid organization (firm) Intensive cooperation Control and monitoring (governance) embedded in organization Embedded transfer of tacit knowledge and knowledge accumulation Long-term perspective Disadvantages of equity alliances: Long and costly implementation process High switching costs Complex organization (two-tiered agency problems) Inflexibility Advantages of non-equity (contractual) alliances: Short implementation process Low switching costs Project-based Flexibility Short-term perspective Disadvantages of non-equity alliances: Arm’s length control and monitoring (contracts) Fragmented transfer of tacit knowledge and knowledge accumulation

6. source : CATI

7. Recent trends: Growth of R&D alliances Mainly found in high-tech industries Growing importance of non-equity R&D alliances Need for flexibility Implications for inter-firm R&D networks: – flexible networks – complex networks

8. Networks of inter-firm R&D alliances in bio-pharma, 1975-1979

9. N Networks of inter-firm R&D alliances bio-pharma, 1980-1984 ch industry, 1985-1989

10. Networks in the biotech industry, 1995-1999 Networks of inter-firm R&D alliances in bio-pharma, 1995-1999

11. source : CATI

18. So what have we learned? Increase in R&D alliances More flexible forms of R&D partnering Concentrated in high-tech industries Complex network configurations Share of int. R&D alliances stable (+/- 60%) Dominance of OECD countries US has become the main player Increasing role of NIC, recently China and India source : CATI

19. Thank you for your attention source : CATI