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Abstract

The traditional approach to the development of new products and services is to perform research and development (R&D) internally to the firm (Doz and Hamel 1998, Chesbrough 2003). However, in the face of rapid evolution of consumers’ needs as well as the uncertainty of technological change, R&D activities are an area where alliances have been increasingly sought and have even played a dominant role (Shan 1990, Kogut 1991, Hagedoorn and Schakenraad 1994, Raassens, Wuyts and Geyskens 2012). According to Capron and Mitchell (2012), firms choose from among three alternatives, based on the firm’s existing capabilities and partnership characteristics: build, borrow, or buy.1 Indeed, firms do not always have or cannot necessarily acquire the competencies and know-how required for new product development (NPD) (see the discussion on innovation characteristics in Chapter 2). Such competencies may include (Capron and Mitchell 2012):

  1. 1.

    Skills

  2. 2.

    Know-how

  3. 3.

    Technologies

  4. 4.

    Methods

  5. 5.

    Broad competencies

  6. 6.

    Other assets

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© 2016 Hubert Gatignon, David Gotteland and Christophe Haon

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Gatignon, H., Gotteland, D., Haon, C. (2016). When to Forge Alliances?. In: Making Innovation Last: Volume 1. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-137-56098-8_6

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