Equity links and information acquisition in biotechnology alliances

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Equity Links and Information Acquisition in Biotechnology AlliancesAbstract:We use a simple model of collaborative innovation to structure an empirical analysis of minority equity links in biotechnology alliances between clients and R&D firms. In the model, an equity link is an investment in information acquisition: it improves the ability of the client to learn about the R&D firm's ability and the alliance project's quality. The model generates several testable hypotheses about how the R&D firm's project characteristics and previous alliances affect the use of equity links in new alliances. We test the hypotheses using a large data set of biotechnology alliances and find empirical support.

Modes of Cooperative R&D Commercialization by Start-ups

“…In the context of strategic alliances, equity use has also been conceptualized as helpful in capturing upside gain through option value (Santoro and McGill, 2005), enhanced monitoring and information acquisition (Filson and Morales, 2006), and in enabling learning effects (Anand and Khanna, 2000).…”

The Certification Role of Large Customers in the New Issues Market

“…Various interfirm arrangements, such as customer equity ownership in suppliers, long-term purchasing agreements, and strategic alliances also create close ties between customers and their suppliers, facilitating information flows among them (Filson and Morales, 2006). By maintaining close product-market relationships with IPO suppliers, large customers have greater access to proprietary information about IPO firms and are particularly knowledgeable about the IPO firms' operations and future industry prospects.…”

Effects of profit‐reducing policies on firm survival, financial performance, and new drug introductions in the research‐based pharmaceutical industry

“…In the mid-1980s, less than 100 alliances between drug and biotechnology firms were being initiated each year. By the late-1990s, over 400 such alliances were being initiated each year (Filson and Morales, 2006). 14.…”

“…15. The biotechnology industry is characterized by alliances, and the number of alliances has grown dramatically over time (see Filson and Morales, 2006). Small firms in other high-tech industries also often pursue licensing or selling technology (see Filson and Gretz, 2004).…”