Question:

A number of factors will influence whether a firm chooses to collaborate on an innovation. Some of the most important factors include whether the firm (or a potential partner) has the required capabilities or other resources, the degree to which collaboration would make proprietary technologies vulnerable to expropriation by a potential competitor, the importance the firm places on controlling the development process and any innovation produced, and the role of the development project in building the firm''s own capabilities or permitting it to access another firm''s capabilities.

Respond to the following:

What are some advantages and disadvantages of collaborating on a development project? Give an example.

How does the mode of collaboration influence the success of collaboration? Consider strategic alliance, joint venture, outsourcing, and collective research organization.