Research Seminars

«Hybrid Strategies for Technology Commercialization: Evidence from Biotechnology

Speaker: Simon Wakeman
Haas Business School, University of California

10 January 2007 - From 16h00 to 18h30

Download

Since a start-up technology firm typically lacks the assets and resources necessary to commercialize an innovation alone, a common arrangement is to enter into a technology commercialization alliance with an established product firm However, a popular strategy for start-up firms in recent years to retain some rights to market the alliance product alongside the product firm. This choice of hybrid strategy between exclusive licensing and downstream integration (known as co-promotion) is puzzling for two reasons. Firstly, since the established product firm has a comparative advantage in marketing & distribution, this arrangement potentially increases the cost and risk associated with commercializing the innovation. Secondly, since marketing rights are the primary currency in these alliances, by retaining co-promotion rights the technology firm effectively foregoes financial payments that could be used to finance further research and development of its own products. Drawing on the transaction-cost and
dynamic capabilities (or resource-based) theories of organization, this paper proposes two alternative explanations for why a start-up firm retains co-promotion rights in a technology commercialization alliance: (1) by retaining some control over the commercialization process, the technology firm seeks to mitigate the risk that the product firm will ‘shelve' the alliance product; and (2) by learning from the product firm during the alliance, the technology firm seeks to acquire the knowledge necessary to commercialize future products alone. The paper then tests these two propositions on a large dataset of alliance contracts from the biotech industry. The empirical analysis reveals that the dynamic capabilities theory is more helpful in explaining the allocation of marketing rights in an alliance contract. Nevertheless, firms which retain copromotion rights do not appear to experience the stronger financial market performance claimed
by the industry practitioners. The paper demonstrates that a dynamic framework considering
both governance and learning is needed to understand the design of technology commercialization alliances.

Finance

Speaker: Xavier Gabaix

13 June 2019 - T104 - From 2:00 pm to 3:15 pm


Finance

Speaker: Adriano Rampini

23 May 2019 - T105 - From 2:00 pm to 3:15 pm


Finance

Speaker: Luke Taylor

16 May 2019 - T105 - From 2:00 pm to 3:15 pm


Finance

Speaker: Jessica Jeffers

18 April 2019 - T104 - From 2:00 pm to 3:15 pm


Finance

Speaker: Emil Verner

4 April 2019 - T104 - From 2:00 pm to 3:15 pm


Finance

Speaker: Niels Gormsen

28 March 2019 - T104 - From 2:00 pm to 3:15 pm


Finance

Speaker: Ramona Dagostino

14 March 2019 - T104 - From 2:00 pm to 3:15 pm


title : TBA

Economics & Decision Sciences

Speaker: Harry Di Pei
Northwestern

12 February 2019


title : TBA

Economics & Decision Sciences

Speaker: François Geerolf
UCLA

18 December 2018


title : TBA

Economics & Decision Sciences

Speaker: Marko Tervio
Aalto

13 December 2018



JavaScriptSettings