Technology Strategies for Growth and Innovation : A Study of Biotechnology Ventures

Despite the large number of entrepreneurial companies involved in cooperative networks in high–technology industries, there is relatively little work on how R&D collaboration affects start–up company outcomes. This study focuses on the effect of technology partner selection and relationship arrangements on young firm growth and innovative performance. Statistical results on a sample of 103 new biotechnology companies show that technological collaboration has contradictory effects: while the number of partners and their average industry tenure is positively related with start–up growth and total innovative output, we find that collaboration may become a liability for radical innovation. These results have practical implications for R&D partner selection in entrepreneurial companies