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Development mode: a transaction cost conceptualization

Author: Robertson, T. S. ; Gatignon, HubertINSEAD Area: Marketing Series: Working Paper ; 95/65/MKT Publisher: Fontainebleau : INSEAD, 1995.Language: EnglishDescription: 27 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: Technology alliances have emerged in the past decade as a significant mode of innovation development. The present research assesses: (1) factors explaining whether firms will engage in technology alliances or utilize the more traditional mode of internal RandD and (2) the market success rate of innovation development depending on the mode selected. The hypotheses stem from a transaction cost conceptualization. The results are encouraging in identifying factors which relate to the selection of a technology development mode and the success rate of each mode. Firms which pursued a technology alliance in line with the model's predictions achieved higher market success rates
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Technology alliances have emerged in the past decade as a significant mode of innovation development. The present research assesses: (1) factors explaining whether firms will engage in technology alliances or utilize the more traditional mode of internal RandD and (2) the market success rate of innovation development depending on the mode selected. The hypotheses stem from a transaction cost conceptualization. The results are encouraging in identifying factors which relate to the selection of a technology development mode and the success rate of each mode. Firms which pursued a technology alliance in line with the model's predictions achieved higher market success rates

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