Portfolios of Interfirm Agreements in Technology-Intensive Markets: Consequences for Innovation and Profitability

Despite the high relevance of firms’ portfolios of upstream interfirm agreements in technology-intensive markets, little is known about their impact on innovative success. The authors develop a conceptual framework that explains the consequences of different portfolio descriptors for radical innovation, incremental innovation, and profitability. An empirical test in the pharmaceutical industry shows strong support for the developed...