In our increasingly globalized world, most firms are resorting to partnering with several others within the chain to perform specific functions. This is because technology is getting so rapidly complex, that for niche functions, one needs to enlist the services of specialists. Also with operations moving out globally, foreign collaborations have become the norm. A study was conducted by Wharton’s Mack Institution for Innovation Management to assess the best forms of partnership engagements. There are three broad ways to collaborate. The first is where all partners are domestic. Another is where all are foreign, and the third being a mix of domestic and overseas collaborators. The study involved pharma and biotech firms from across fifty-seven countries. The interesting business intelligence to emerge was that for “radical” path-breaking innovations, that break the status-quo in the respective industry, all-foreign partnerships served the best purpose. For impactful “innovations” which were more incremental in nature, preserving the status-quo was essential, so all-domestic partnerships work best. This also takes into account countries with diverse differences internally in culture and laws. The mix of foreign and domestic players hardly serves any purpose. The network system in business will only expand over time.

Source:http://knowledge.wharton.upenn.edu/article/the-first-step-to-successful-innovation-choosing-the-right-partners/

Uploaded Date:14 December 2017