Exploration and Exploitation Alliances in Bio-Pharma

Speaker: Dr Silvia Massini # Manchester Institute of Innovation Research (MIOR), Manchester Business School; Speaker: Dr Despoina Filiou # Centre for International Business and Innovation, Manchester Metropolitan University Business School

26th Sep 2011

15:30 - 17:00

Seminar Rm 1.06, Old Surgeons' Hall, HSY

Abstract

This study distinguishes between exploitation and exploration alliance portfolios to shed new light on the nature of firm innovation returns from alliances. Extant literature provides conflicting findings on innovation returns from alliances, while the role of alliance portfolios is little explored. This study develops two arguments. First, it contends that the relationship between alliance exploitation portfolios and firm innovation resembles an inverted U. Second, it argues the effect of exploration alliance portfolios on firm innovations to be U-shaped. Testable hypotheses are explored in the context of the UK bio-pharmaceutical sector between 1991 and 2001. The results provide only weak support for the first hypothesis, while the second hypothesis is strongly supported. We derive important insights for the management of portfolios of innovation alliances.

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