Joint research and development projects as technology training ventures

This paper presents an empirically derived model of the process through which industrial firms that lack internal resources in a particular technology area to implement certain research and development (R&D) projects on their own, initiale nad implement them jointly with not-for-profit research institutions. Such joint R&D projects are typically initiated by smaller, technologically less advanced firms in developing countires, with the underlying objective of training themselves in the relevant technology area and acquiring new technological resources from more advanced local research institutions, while simultaneously and rapidly completing the immediate R&D project. This process model has been developed by drawing from and synthesizing several in-depth case studies of such projects. In developing countries, joint R&D projects of this nature are important, as they can be more effective than formal technology training programmes for not-for-profit research institutions to fulfil their charter by transerning their advanced technical knowledge to the relatively less advanced local industrial firms. Participating firms that seek to their immediate interest, and therefore learn it rapidly and effectively. This paper adds to the scarce literature on ht process of organizational knowledge acquisition through contractual arrangements such as joint projects. It also enables both firms and research institutions to understand effective proceses for initiating and implementing such mutually beneficial joint R&D projects.     

From Imitation to Innovation: The Evolution of R&D Capabilities and Learning Processes in the Indian Pharmaceutical Industry

Since the mid 1990s the Indian pharmaceutical industry has emerged as a leading supplier of generic drugs to both developing and developed countries.The movement of the Indian pharmaceutical industry along the R&D value chain represents a remarkable shift from an importer to an innovator of drugs. The Indian government's industrial and technology policies along with changes in regulation of intellectual property rights played a crucial role in shaping this development of R&D capability. Using the 'capability creation model' this paper discusses the learning processes and stages involved in this dramatic accumulation of technological capability. This analysis shows that the Indian pharmaceutical industry has followed a trajectory from duplicative imitation to creative imitation to move up the value chain of pharmaceutical R&D. Finally as a result of changes in patent law the industry is learning to develop capabilities in innovative R&D. The basic and intermediate technological capabilities gained from imitative learning gave these firms a solid base for development of competence in advanced innovative R&D. These findings have implications for government policies as well as firm strategies in other developing countries albeit with some limitations due to global harmonisation of patent laws being promoted by the World Trade Organization.     

Strategies of biotechnology companies

To identfy the R&D and marketing strategies adopted by by biotechnology firms in the UK, a survey was conducted spanning a range of biotechnology firm size, product, organizational arrangemens. and prior experiences with advanced technology. This was done using a comprehensive questionnaire similar to that used in a comparable investigation in the USA. Twenty-three firms active principally engaged in speciality chemicals human diagnostics and agricultural products.The information from the questionnaires was used to analyse the company strategies under three man headings. These were technology acquisitation,marketing and R&D. Companies were charecterized into three clusters within each of these headings. The means of appropriation for different strategies were then examined although the significance of the results was undermined by the small size. Finally, the relationship between R&D and marketing strategies within the same firms was investigated.     

Strategic Research Partnerships: Empirical Evidence from Asia

This paper evaluates the role Strategic Research Partnerships (SRPs) play in Asia. Specific Asian institutional settings influence the roles of SRPs. Japan is regarded as a forerunner in the practice of SRPs. In Japan, lack of spillover channels, limited opportunities for mergers and acquisitions, weak university research and pressure for internal diversification motivate firms to form SRPs. In Korea, SRPs are regarded as a means to promote large-scale research projects. In Taiwan, SRPs are formed to facilitate technological diffusion. Empirical findings on SRPs, focusing on government-sponsored R&D consortia in Japan, are summarized. Issues regarding SRP formation, their effect on R&D spending of participating firms, and productivity, are examined. Reference is made to alternative forms of measurement of SRPs and their potential application to Asian countries is assessed. Enhancing the capacity of policy-makers to assess the extent and contribution of SRPs is considered to be a priority.     

Exploring Strategic R&D Success Factors

This paper identifies strategic R&D success factors for organizations that produce R&D results for proprietary use. First, six types of R&D organizations are identified by using the criteria of profit orientation and external or internal use of R&D results. Following this, success criteria are identified by studying sample organizations that match the classification criteria. In the concluding section it is shown that important success criteria can be derived, many of which are independent of the organizational arrangement chosen for the generation of R& D results. Among them are: embedment into the scientific system, development of core competencies, securing appropriability, choosing appropriate organizational structures and processes.     

R&D Investments, Information and Strategy

This paper argues that firms can best realize the value of their investments in R&D by exploiting the associated information asymmetries. Attention is directed away from the physical results of R&D and towards the firm's ability, more generally, to earn rents from the private information emanating from its R&D. Four strategies may be used to exploit the information asymmetries from R&D: (1) publish the details of the innovation in return for legal protection; (2) keep the information inside the firm; (3) make the information selectively, informally available to others; and (4) disseminate the information as widely and rapidly as possible. To implement these strategies, resources may be allocated both to the commercial development of new technologies, and/or to related market opportunities (investing in other companies, assets and technologies). Of critical importance are the innovator's own skills and resources in effectively gathering, understanding, and commercially exploiting R&D-generated information asymmetries, both internally and in relation to other firms. This study should yield new insights to managers in designing strategies (and counter-strategies) to position themselves not only at the technological edge, but more fundamentally, at the 'information edge'.     

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.     

Marketing and r&d strategies for biotechnology firms in the usa

This pape reports on a survey of 64 biotechnology firms in the USA about their R&D strategy, marketing focud and sources of technology. The survey explored the interrelationships among the strategic issues and how they were related with the means of appropriating R&D results. Three stralegic clusters for technology acquisitin emerged from the data: (i) internal developer, (ii) joint developer, and (iii) cooperative financed. Three marketing clusters were: (i) market penetartor, (ii) innovative marketer, and (iii) market developer. The R&D clusters were: (i) defensive strategy, (ii) aggressive strategy, and (iii) research-intensive strategy. External sources of technology appeared to be predominant among thje various firms and apparently marketing strategy and source of technology had no significant relationship. Most of the firms were involved with commercial innovation in their R&D strategy and few were research specialists. Innovative firms were inclined to depend on external sources sources of technology. Issues related to appropriability of R&D results for the different groups have been examined for their implications for public policy.     

Coordinating R&D and business planning

In order for US companies to become more competitive they need to improve coordination between their R&D and business planning. This article explanis what is known about coordinating R&D and business palnning, and provides guidance on how to improve it. It examines the development of a technology plan. Before a company can effectively deal with issues related to coordinating R&D and business planning, the R&D organization should understand its own capabilities through developing a technology plan. The intergration of technology planning with business planning is then examined. Two types of business palns are considered in relation to technology planning-product line strategies and a long-range business plan. Finally, the problem of definning on R&D organization's mission clearly is looked at.     

Research and Technology Outsourcing

The paper discusses the process of externalization and the contracting out of R&D and technical activity. The focus of the analysis is on the outsourcing of R&D and technical activity undertaken by firms and now outsourced to companies and organizations which supply the Contract Research and Technology (CRT) market. The analysis highlights that not only is it important to understand the factors in the demand for such services but also in changing dynamics of the nature of the research and technical services supplied and the way they are supplied. The paper then investigates the implications of these dynamic trends for the conduct of the R&D function, particularly towards research externalization and outsourcing, via the use of firms and organizations involved in contract research and technology.     

Some Determinants of Core Competencies: Evidence from a Binary-Logit Analysis

Despite the increasing recognition of the salience of core competencies in the process of competition, the notion of core competencies has remained largely ambiguous in the literature. Neither is it clear what strategies, institutions, and resources are necessary for developing and sustaining core competencies. This paper uses the binary-logit model to explore the determinants of core competencies, and identifies investment in intangible assets, marketing/promotional activities and firm size as significant determinants of core competencies. An evaluation of the technology strategies of two competence-seeking firms also points to the increasing salience of intangible assets, decentralization/globalization of the R&D function, and the intensive search for knowledge and capabilities.     

Business process re-engineering: experiences in R&D

This study presents information drawn from leading transnational organizations headquartered in the US that are, to different degrees, involved in restructuring their R&D. Interviews were conducted with three companies in the chemical/pharmaceutical industry and three in electronics/information technology. All companies interviewed agreed on the need to organize their R&D more effectively in order to meet consumer demands and respond to competitive pressure. There are significant differences in the extent to which each company is involved in organizational change as well as their approach to such changes. The interview findings indicate that global re-engineering and business transformation programmes are being carried out. We identify the application of such approachs, men though thg may be initiated under other names.     

Patterns in UK company innovation styles: New evidence from the CBI innovation trends survey

This paper reports on the results of an analysis at Centre for Research on Innovation and Competition (CRIC) of the data from the 1996 and 1997 Survey of Innovation Trends conducted by the Confederation of British Industry (CBI) in conjunction with the NatWest Bank in the UK. This is one of the few, direct surveys of innovation activity, as opposed to R&D and patenting actvity, which is conducted in the UK It is characterized by the fact that it asks responding firms to report on trends in a wide variety of aspects of their innovative behaviour. The central feature of the analysis in this paper is a factor analysis of the answers to a set of 15 questions on different aspects of innovative behaviour. This results in a three-factor solution which reveals three distinct 'styles' of innovation in the behaviour of respondents. These three styles are shown to be broadly applicable to both manufacturing industry firms and service industry firms in the sample, thus revealing a dimension of innovation in the service sector which is not so readily disclosed by analysis of R&D or patent statistics. Statistical modelling of the constraints and incentives influencing innovation shows that while constraints do not appear to be very significant, competitive pressure and the utilization of collaborative linkages are strongly positively associated with innovation, and especially with a more radical s o b of innovation. Ihe paper concludes that the CBI survey provides data about innovation in the UK which are not easily provided through other means. Its format allows certain aspects of innovation—particularly the similarities and differences between manufacturing and services —to be examined in an interesting way.     

Discontinuities in genetic engineering for pharmaceuticals? firms jumps and lock-in in systems of Innovation

This pape criticizes the concept of 'technological discontinuities'. It argues that the concept is misleading when the skills and knowledge of an indusry are composed of multiple rather than single core technologies. In cases such as the use of genetic engineering as the basis of production in pharmaceuticals, both existing pharmaceutical firms and new biotech firms integrate the new techniques into existing indusrial practice. The radical tecnology both enhances and destroys existing knowledge; the key to survival has been integration. Both existing and new firms have had the possibility of integrating multiple core technologies, but firms have been able to do so in different ways. Some existing firms could jump over to the radically new 'technological trajectory', by combining their creation of new competencies through in-house R&D with their access to novelty through relations with external agents in systems of innovation.     

Science and Corporate Strategy: A Bibliometric Update of Hounshell and Smith

Hounshell and Smith's Science and Corporate Strategy: DuPont R&D, 1902- 1980 is one of the most comprehensive business history books ever written. In addition, it highlights the important relationship between corporate strategy and R&D activities. The purpose of this current paper is to update the information on DuPont's R&D activities using secondary data and bibliometrics. Our findings are that DuPont underwent a series of dramatic shifts in their R&D efforts during the 1980s and into the 1990s. For example, there was a focus on life sciences, a concerted attempt to reduce R&D, and an endeavour to align R&D more with core businesses. Beyond the bibliometrics, we found that corporate performance and changes in the top management team may have precipitated these changes in R&D. The implications of such relationships are also discussed.     

Managing global research and development in China: Patterns of R&D configuration and evolution

The growing internationalization of R&D activities challenges multinational corporations (MNCs) to formulate technology strategies and manage increasingly diffuse and diverse networks of R&D laboratories and alliances in the context of disparate national institutions. This paper examines the evolutionary processes of MNCs' R&D strategies in China in terms of two principal dimensions, i.e. geographic dispersion and functional focus. Based on a study of 378 international R&D centers and alliances established in China over the 1995-2001 period, we investigate the evolution of managing international R&D configurations in an emerging economy. The model is further illustrated with key findings from case studies of three leading high-tech MNCs in managing their global R&D operations in China over 1996-2004, specifically Fujitsu, Motorola and Nokia. This study contributes to the existing literature by exploring the globalization of R&D through foreign centers of scientific and technological excellence, which enables MNCs to innovate closer to their product markets and manufacturing facilities in emerging markets.     

The occurrence and spatial distribution of collaboration: biotech firms in Gothenburg, Sweden

This paper deals with the occurrence and spatial distribution of collaborations within biotechnology. By starting from a total population of 45 firms involved in biotech R&D, we shed light on how many collaborate with (1) other firms, (2) venture capitalists, and (3) actors in science and technology and whether these partners can be found in the region, nation or in the rest of the world. Possible explanations for the different patterns are drawn out.     

Productivity, innovation and R&D: Micro evidence for Italy

By exploiting a rich firm level data-base, this paper presents novel empirical evidence on the effect of process and product innovations on productivity, as well as on the role played by R&D and fixed capital investment in enhancing the likelihood of introducing innovations at the firm level. Our results imply that process innovation has a large impact on productivity. Furthermore, R&D spending is strongly positively associated with the probability of introducing a new product, whereas fixed capital spending increases the likelihood of introducing a process innovation. The latter result might reflect the fact that new technologies are frequently embodied in new capital goods. However, the effect of fixed investment on the probability of introducing a process innovation is magnified by R&D spending internal to the firm. This implies that R&D can affect productivity growth by facilitating the absorption of new technologies.     

Restructuring corporate r&d: from an autonomous to a linkage model

Since the mid-1980s, industrial R & D in the US has been going through major changes, i.e. a decline in industrial R&D expenditure and restructuring of centralized coqorate R&D laboratories. the autonomous model of rerearch, which has existed since World War Il, is being replaced by the linkage model in many leading corporate R&D laboratories. This paper presents the main features of both models, the reasons behind the retructuring, and the future implications of the linkage model. The findings of the paper are primarily based on 53 industrial with industrial scientists and managers; most of the changes are new and have not been examined in the literature. This paper draws the attention of scholars to recent changes in the management qf znnovatzon and sugests further study. The linkage model links scientists' research to the immediatt needs of business. However, it also decreases the likelihood of major breakthroughs occurring in technological in.innovation.