Who is My Partner and How Do We Dance? Technological Collaboration and Patenting Speed in US Biotechnology

In settings where patents and intellectual property provide a strong regime of appropriability, the race to be the first firm to patent a product or a process is a central feature of competition. In this context, we hypothesize that cooperative arrangements that only gain access to external knowledge contribute less to heterogeneity between firms and have a much weaker influence on patenting than alliances that transfer highly firm-specific knowledge, residing in individual and social relationships. We also hypothesize that cooperations between private firms and public organizations accelerate the rate of patenting to a higher degree than cooperations among private firms. We develop and test these ideas on the population of 839 US biotechnology firms between 1973 and 2003. We discuss the importance of our findings on the debate about the value of knowledge access versus knowledge transfer in strategic alliances.