Interorganizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology

1. Interorganizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology Walter W. Powell Kenneth W. Koput Laurel Smith-Doerr 경영학 OM 1학기 주천우

2. Summary: • Research background: Repaid technology development • Interorganizational Collaboration • Organizational learning • Learning through Network • 4 Hypotheses • Case study of DBFs in human therapeutics • Learning Model

3. Summary: Network of learning • The locus of innovation is found in networks of learning. • R&D alliances are the admission ticket, the foundation for more diverse types of collaborations, and the pivot around which firms become more centrally connected.

4. Learning through network Phenomenon & Trend: • Old model: internal R&D + outside contract research • New model: learning through external collaboration Network Learning External： • 1. technological changes (advances on existing & new discoveries) • 2.potential resources (formal contractual exchange & informal relations) • 3. the influence on internal capability ( technology & management) Internal： • 1. lack of enough ability • 2. internal assets (to be a collaborator) • 3. position in the value chain

5. Hypotheses: • No.1: • The more (a) number of R&D alliances and (b) experience at managing R&D and other ties, the greater (1)the number of non-R&D collaborations (2)and the more diversity its portfolio of ties will become. • No.2: • The greater (a) the number of R&D alliances, (b) the diversity of ties, and (c) the experience at managing ties, the more (1)centrality and (2) total number of ties and connectedness. • No.3: • The greater (a) centrality and (b) experience at managing ties, the more rapid growth.  • No.4: • The greater centrality, the greater number of R&D collaborations. R&D alliances Experience with managing interfirm relationship Network position Rates of growth Portfolios of collaborative activities

6. Case study: • Research-driven DBFs in human therapeutics • Operationalization and Measures • Statistical Methods • Test on Hypothesis • Cycles of Learning in biotechnology network

7. Discussion: • This paper is finished in 1996, and the data and case is from 1990-1994. From the point of nowadays, the theory of network learning is obvious and reasonable. (1)But is there enough incentive or motivation for an organization to change its internal structure and previous strategy to enter a network through different types of collaboration? (2)If an organization enters a network through some form of external collaboration, what changes about technology strategy should it make? (according to Network of learning: the influence on a firm’s technology strategy, and even the corporate-level strategy? )

8. Discussion & Critiques: • Practical implications? From the learning cycle, first step entering the network is R&D alliance in biotechnology industry. In some other industry, what about some other types of ties can be treated as the “admission ticket”? • 다른 산업에서는 기업이 네트워크에 들어가기 위해서는 어떤 단계가 필요할까?

9. Discussion & Critiques: • R&D collaboration is a really good form of inter-organizational collaboration, but in reality perspective, the four hypotheses are not feasible in every situation. The authors’ opinion is “the more, the better”. But is it really true?

10. Discussion & Critiques: • The paper is a little long, and it seems try to cover several research points. For example, in the section of discussion, the author tries to connect the network learning and the market performance of companies, which could be set as another research topic to write paper. (Is there direct relationship between the degree of a organization’s participation in each network and number of ties it has and the organization’s market performance?)

11. Thank you!