Organizational modes of inter-firm co-operation and technology transfer

Abstract

In economic analyses co-operative agreements are occasionally discussed with reference to their dissimilarity in organizational and economic ‘solidity’ and the impact of separate modes of co-operation on economic performance. However, many studies still refer only to joint ventures and apparently assume that other forms of co-operation share identical features. Nevertheless, it should be clear that co-operative agreements differ with respect to both organizational and economic effects. For example, a joint venture is a new company established by two or more partners and, as such, it introduces a change in an existing market structure; a licensing agreement, which regulates technology transfer in return for a fee, definitely has less far-reaching consequences for the companies involved. In other words, it is important to note that the organizational design of co-operation can be expected to be related to the strategies and economic performance of companies, reflecting their ability to model their inter-firm relationships. The major objective of this paper is to present a detailed overview of different modes of inter-firm co-operation. This study shows the variety of inter-firm agreements, reflecting the complexity and dynamics of private governing structures in capitalist economies which are attempting to cope with the present far-reaching consequences of technological development.