INNOVATING THROUGH ALLIANCES - EXPECTATIONS AND LIMITATIONS

In this paper we have analysed the innovation processes occurring in s everal cross-industry technology partnerships in order to suggest some key managerial issues pertaining to the effectiveness of these increa singly popular initiatives. Our general proposition, based on an exten sive literature review and clinical research, is that the managerial h urdles in partnerships frequently offset, and in some cases eliminate, the expected innovation advantages. We submit that there is a fundame ntal tension between the dynamics of innovation and the logic of partn ering. The extent of the tension, however, depends on the nature of th e innovation project and on the characteristics of the partnership. Th us we recommend that managers involved in the formation of joint-R&D a greements should carry out an innovation-partnering assessment to desi gn an appropriate management structure that would minimise the 'tensio n'. Lastly, we suggest some ingredients for carrying out such an asses sment, and directions for further research.