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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.
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Mai Trong Thong, Hoang Xuan Thanh, Ha Thi Phuong Tien and Tran Tuyet Hanh