1. Chapter 8 Learning thorugh alliances

2. Acquiring technology Different mechanisms...internal and external
Acquisition of
a firm with
knowledge
Technology
Transfer
Reverse
Engineering
In-house
formal R&D
Contract
R&D
Licensing
Joint-venture
Strategic R&D
partnership

3. Learning through alliances
Why do firms collaborate?
What types of collaborations are most appropriate?
How do technological and market affect collaboration?
How do organization and management affect collaboration?
How can a firm exploit collaboration for learning?

4. Why do firms create alliances?
3 groups of motives: technological, market and organizational
Cost and risk
technological development
market entry
Economies of scale
Time reduction to develop and commercialize
Shared learning
Dangers: information leakage, loss of control/ownership, conflict

6. Table 8.2 Forms of collaboration
Types of collaboration
©2005 Joe Tidd, John Bessant and Keith Pavitt

7. Supplier relations and subcontracting
Figure 8.2 How objectives and nature of supply market influence supplier relationships
©2005 Joe Tidd, John Bessant and Keith Pavitt

8. Technology licensing Exploit the intellectual property of another firm
Payment
Royalty
Grant back improvements
Seller decides specific applications and markets
Lower development costs, lower technological and market risk, faster product development and market entry
Loss of control, transaction costs

9. Research Consortia Organizations working on research projects together
Cost and risk of research, resource mobilisation, performing early research, setting standards
Different forms: pooled investments in common facility (Europe), coordinated in-house research (USA), hybrid (Japan)
Competitors or non-competitors
Difficulties: goals, commercialisation, coordination, technology transfer

10. Strategic alliances and joint ventures
Co-development of a new technology or product
Nearer market
Specific end goal and timetable
Do not become a separate company
Joint ventures
New company – legal entity
Contractual – separate management
Motives:
To build critical mass – co-option
To reach new markets – co-specialization
To gain new competencies – learning

11. Innovation Networks
Organizational response to the complexity and uncertainty of technology and markets
A number of actors (individuals, firms, business units, universities, governments, customers, etc.) and interactions between them
How these actors are influenced by their social context and how actors influence the social context… hence interaction and dependence!
Regional, national, sectorial, technological
Buzz words: Power, legitimacy, path dependency

12. Links require significant investment in resources
Tight or loose depending in the quantity (number), quality (intensity) and type (closeness to core activities) of the links
Links require significant investment in resources
Different types of links or interactions:
Product interactions
Process interactions
Social interaction within the organization
Social interaction between organizations
Formal and informal ties or links

13. Technological and market factors
©2005 Joe Tidd, John Bessant and Keith Pavitt

14. Two dimensions of technology accquisition
Characteristics of the technology:
Competitive significance
Complexity
Codifiability
Credibility potential
Organization’s inheritance:
Corporate strategy
Capabilities
Firm’s culture
Management comfort

17. Learning
©2005 Joe Tidd, John Bessant and Keith Pavitt

19. 3 factors affect learning through alliance:
Intent
Learning as opposed to accessing resources
Choice of partner
Form of collaboration
Transparency
Openness and potential
Corporate culture/skills
Receptivity
Capacity to learn
Believe in abilities
Gap in skills

20. Figure 8.1 A model for collaboration
©2005 Joe Tidd, John Bessant and Keith Pavitt

21. THANK YOU