The information value of R&D alliances: The preference for local or distant ties

  • Hagedoorn J
  • Letterie W
  • Palm F
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Using a Bayesian learning model, the authors provide a formal understanding of the strategic implications of a firmΓÇÖs R&D alliance activity through its local or distant ties. A major advantage of the model is that it facilitates an explicit analysis of the factors that determine a firmΓÇÖs potential to learn from its R&D alliances. The articleΓÇÖs theoretical approach shows how technological uncertainty, information redundancy and heterogeneity of information accuracy jointly affect the formation of inter-firm alliance ties.

Author-supplied keywords

  • Bayesian learning
  • R&D alliances
  • local and distant ties
  • social network theory

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