The strategic management of R&D collaboration

For many firms collaborative R&D is an important component of their technology strategies. R&D collaboration can provide valuable supplementary technological knowledge for firms, building technological capacity. Due to the additional problems of managing R&D in collaboration, rather than entirely in-house, outcomes from it are often uncertain and benefits are hard-earned. This paper, based on a literature review, and on six case-studies of firms experienced in collaboration, examines some of these problems. Because of the high management costs of collaboration, the length of tme needed to build effective communications paths between different organisations, and the specific technological nature of these forms of inter-firm linkage R&D collaboration should be a strategic toncern. Partner selection should be made, and the collaboration conducted, on the basis of the expectation of a continuing relationship encouraging mutual learning and based on a high degree of trust.