Strategic partnerships in research and development (R&D) are a new form of international relationship distinguishable from more traditional forms of joint ventures and licensing arrangements by three main characteristics. First, they are focused on joint knowledge production and sharing as opposed to a one-way transfer of technology-where knowledge is understood to include research and development, as well as design, engineering, marketing and management capabilities. Second, they are frequently contractual in nature with little or no equity involvement by the participants. Third, they tend to be part of the longer term planning activity of the firm rather than simply an opportunistic response to short-term financial gain.
After briefly tracing the extent to which R&D has become both more collaborative and more internationalized, the paper offers an explanation for this process and an illustration of strategic partnering activity in the context of the European Strategic Programme for Research and Development on Information Technology (ESPRIT). Lastly, it draws out some of the implications of this new form of international competition for the newly industrialized economies (NIEs).