Once Bitten, Twice Shy? – Learning from Experience in the Context of R&D Cooperation and Copying of IP

Abstract

In this article we show how experience, learning, and, ultimately, knowledge influence a company?s strategic decision-making. We base our argumentation on learning from failure literature and the 4I framework. We test our hypotheses empirically using data from the German Mannheim Innovation Panel (Community innovation survey) in the context of R&D cooperation and copying and infringement of IP(R). Until now, research has not yet focused on how an organization?s own experience with copying of own non-protected intellectual property and infringement of own intellectual property rights (e.g., patents, trademarks, etc.) and learning from it affect the tendency to cooperate in R&D. We find that firms with experience regarding copying of IP are less willing to engage in research collaboration. In contrast, firms with experience regarding infringement of IPR are more likely to cooperate on R&D. Our findings have implications for management and policy. We find that companies should strive for unambiguous IP(R) ownership and invest into drawing contracts addressing these issues, especially if they want to cooperate with a partner who experienced copying of IP. Policy should strive for clear IP(R) ownership by providing reliable IPR regimes.