Alliances and the pattern of comparative advantages: a sectoral analysis

The pattern of sectoral comparative advantages between the EC, US and Japan is linked to the sectoral distribution of Triad alliances to disentangle different motives and problems of alliances. In addition the impact of comparative advantages on partner selection is examined. It is found, among others, that, contrary to the US and Japan, the EC takes a more defensive stance in industries where it holds a comparative advantage, but it is more actively engaged in alliances in industries where it lacks a comparative advantage. But these weak EC partners are least likely to team up with a strong partner, as compared to US and Japanese companies.