CONDUITS OF INNOVATION OR IMITATION? ASSESSING THE EFFECT OF ALLIANCES ON THE PERSISTENCE OF PROFITS.

This article discusses the role of alliances between firms and other market actors on the development of abnormal profit margins within a given industry. Alliances are presented as any agreement between firms that provides an external resource to benefit the development of corporate research and development. The role of these resources in research and development of new products as analysed in terms of its effect on competitive advantage. The...