Strategic Alliances: Lessons from the New Biotechnology Industry

ABSTRACT

Strategic partnerships or strategic alliances have been called the “life blood” of companies in the new biotechnology industry, and a large number of firms are now participating in such collaborations. However, for a variety of reasons, not all such partnerships are successful. This paper describes some initial results from research conducted on a sample of small new biotechnology firms to identify the types and incidences of their strategic alliances, the reasons why they were formed, and the factors that contributed to their success or failure. Based on these preliminary findings, several recommendations are made for facilitating successful alliances in the new biotechnology and other industries.