Mai Trong Thong, Hoang Xuan Thanh, Ha Thi Phuong Tien and Tran Tuyet Hanh
Hakan Ener and Ha Hoang
Technology ventures often develop products domestically and license them out to large companies for worldwide commercialization. However, international R & D alliances provide an alternative – potentially more rewarding – path to foreign markets. We hypothesize that this path is especially attractive for firms underperforming in terms of product development success relative to aspirations. Our regression analyses in a sample of US-based biotechnology ventures reveal that low performance leads ventures to partner internationally while high-performing ventures refrain from international research and development (R & D) alliances. Thus, pursuing a novel product commercialization.