Joint research and development projects as technology training ventures

Abstract

This paper presents an empirically derived model of the process through which industrial firms that lack internal resources in a particular technology area to implement certain research and development (R&D) projects on their own, initiate and implement them jointly with not-for-profit research institutions. Such joint R&D projects are typically initiated by smaller, technologically less advanced firms in developing countries, with the underlying objective of training themselves in the relevant technology area and acquiring new technological resources from more advanced local research institutions, while simultaneously and rapidly completing the immediate R&D project. This process model has been developed by drawing from and synthesizing several in-depth case studies of such projects. In developing countries, joint R&D projects of this nature are important, as they can be more effective than formal technology training programmes for not-for-profit research institutions to fulfil their charter by transferring their advanced technical knowledge to the relatively less advanced local industrial firms. Participating firms that seek to acquire a new technology to meet future needs can see its development and application in a context of their immediate interest, and therefore learn it rapidly and effectively. This paper adds to the scarce literature on the process of organizational knowledge acquisition through contractual arrangements such as joint projects. It also enables both firms and research institutions to understand effective processes for initiating and implementing such mutually beneficial joint R&D projects.