Leveraging the value of proprietary technologies

This research examines the relationship between technology portfolios and the rate of alliance formation in new, technology-based firms. It uses a knowledge-based perspective to build an argument that new firms can enhance their capacity for forming alliances by building portfolios of technologies and increasing the communicability of their value through patents. We find support for this position in our examination of patent and alliance activities in 67 new firms from the computer and telecommunications industries. These findings provide insights about the relationship between a firm's efforts to build a portfolio of technology resources, the value of which can be understood by potential partners, and its pursuit of development activities extending beyond the boundaries of the internal organization.