Module 7

Question 1

What are the 3 reasons for collaboration?

Answer 1

• Market entry: use externally acquired know-how to break into new markets
• Technology acquisition: application of a specific external technology
• Learning: application of internalized know- how acquired externally

Question 2

What are the three time horizons for collaboration benefits?

Answer 2

Short-term (technology acquisition), mid-term (market entry), long-term (learning)

Question 3

What are reasons to avoid collaboration and go solo?

Answer 3

• Availability of capabilities
• Lack of appropriate partners
• Protection of proprietary technologies
• Controlling technology development and use
• Building and renewing capabilities

Question 4

What is a drawback of hierarchical integration over collaboration?

Answer 4

High capital intensity and drawbacks of hierarchical organization

Question 5

What are the advantages of contract-based collaboration?

Answer 5

• Low capital requirements
• Credibility gain for smaller partner

Question 6

What are the drawbacks of contract-based collaboration?

Answer 6

• Problematic for specialized goods
• Imitation becomes easier
• Dependency on supplier

Question 7

What are the advantages of integration?

Answer 7

• Full control rights
• Advantages of hierarchical organization
• Full rewards

Question 8

What are the drawbacks of integration?

Answer 8

• Time-consuming
• Capital-intensive
• Irreversible
• Drawbacks of hierarchical organization

Question 9

What are two main types of innovation relationships?

Answer 9

Contract-based collaboration and vertical integration

Question 10

Why are contracts in collaborations often incomplete?

Answer 10

Due to unforeseen contingencies and opportunistic behavior

Question 11

What increases transaction costs in collaborations?

Answer 11

Sophisticated contracts aimed at minimizing opportunism

Question 12

When is the creation of suitable contracts and relationships is particularly difficult?

Answer 12

When investments are specific to the partner.

Question 13

What is outsourcing?

Answer 13

Hiring external parties for services like manufacturing or R&D

Fast; often in vertical relationships; on average 10% of R&D spending

Question 14

What is technology licensing?

Answer 14

One firm permits another to use its technology

Fast; often little learning

Question 15

What is a research consortium?

Answer 15

A group collaboration pooling resources for joint research

often national initiatives; difficult to distinguish from strategic alliance and RJV

Question 16

What is a strategic alliance?

Answer 16

Contractual cooperation, often among competitors, without ownership exchange

Question 17

What is a joint venture?

Answer 17

A separate entity jointly owned for collaborative R&D or business

Often new company with separate R&D labs; owned by cooperating
firms

Question 18

What is a network in innovation terms?

Answer 18

A structure combining features of markets and hierarchies for innovation

Question 19

What is an example of outsourcing in tech?

Answer 19

Apple using Foxconn for iPhone manufacturing

Question 20

What is an example of tech licensing?

Answer 20

Microsoft licensing software from Netscape for Internet Explorer

Question 21

What is an example of a strategic alliance?

Answer 21

Starbucks and Barnes & Noble collaboration

Question 22

What is an example of a joint venture?

Answer 22

Jaguar Land Rover and Chery Automobile in China

Question 23

What is an example of a global network collaboration?

Answer 23

GOARN – Global Outbreak Alert and Response Network

Question 24

What did BMW and Toyota collaborate on in 2013?

Answer 24

Hydrogen fuel cell tech and a clean sports vehicle

Question 25

What characterized the Toyota-Panasonic JV in 2019?

Answer 25

Developing next-gen automotive batteries; Toyota 51%, Panasonic 49%

Question 26

What is Smartville?

Answer 26

A Joint Venture of Daimler-Benz and Swatch with 90% outsourced production

Question 27

Which collaboration model gives the most control?

Answer 27

Going solo or integration

Question 28

Which model provides the fastest results?

Answer 28

Outsourcing and licensing in/out

Question 29

Which model is best for developing new competencies?

Answer 29

Strategic alliances, joint ventures and research consortiums

Question 30

What is the time horizon of a research consortium?

Answer 30

Medium-term

Question 31

What trade-off does licensing-out involve?

Answer 31

Low control but high speed and cost efficiency

Question 32

Which collaboration model is the best for accessing other firms‘ competencies?

Answer 32

Joint Venture and Research Consortium

Question 33

In a joint venture control is ____, while control is ____ in a strategic alliance.

Answer 33

shared low

Question 34

Why is knowledge considered a public good?

Answer 34

It is non-rival and non-excludable

Question 35

Private entities can try to** appropriate value **from the knowledge they produce by ____ it.

Answer 35

protecting

Question 36

What system maintains scientific autonomy?

Answer 36

Peer review system

Question 37

What gives scientists recognition in academia?

Answer 37

**Priority** in discoveries and reputation from citations/publications

Question 38

What are the 3 ways to create Incentive System in Science?

Answer 38

1. **Peer Review System**: The legitimacy of scientific theories and observations is established by the scientists themselves. 2. **Priority**: Scientific ideas are associated with the first individual who produced them, low value of a “repeated” idea in science’. 3. **Reputation**: The recognition of priority leads to scientific reputation, which helps scientists’ careers (salary, position, etc.) and broader recognition.

Question 39

Differences between industrial innovation and scientific innovation?

Answer 39

**industrial**: * $, €, SFr * patents * secrecy, establishing property rights **scientific**: * reputation among peers, awards, citations * publications * free revealing, establishing priority claims

Question 40

Who are the actors in the University – Industry Collaboration?

Answer 40

1. Venture Investor 2. Scientists (Tech originator) 3. Industry (Entrepreneurial Team) 4. University (Tech transfer office - TTO)

Question 41

What do venture investors primarily seek?

Answer 41

REVENUES - Financial returns

Question 42

What is a key conflict for scientists in industry partnerships?

Answer 42

Balancing publishing with patenting

Question 43

What are the interests of scientists?

Answer 43

* Reputation * Interesting research co-operations

Question 44

What are universities' main goals in collaboration?

Answer 44

* **Revenues** * Improvement of **research environment** * Technology **transfer** * Building a **network** of research partners * Mission: education & **knowledge transfer** from science to industry

Question 45

What do industries seek from universities?

Answer 45

Access to research, licensing, human capital

Question 46

What challenges arise from differing goals in U-I collaboration?

Answer 46

Tensions between openness (science) and secrecy (industry)

Question 47

What research trend may result from increased industry collaboration?

Answer 47

Shift toward short-term, applied research

Question 48

How might industry influence affect public institutions?

Answer 48

May threaten their independence and long-term research agenda

Question 49

How can industry sponsorship affect scientific output?

Answer 49

By restricting diffusion and publication of results