TY  - JOUR
AU  - Lerner,Josh
AU  - Merges,Robert P.
TI  - The Control of Strategic Alliances: An Empirical Analysis of Biotechnology Collaborations
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6014
PY  - 1997
Y2  - April 1997
UR  - http://www.nber.org/papers/w6014
L1  - http://www.nber.org/papers/w6014.pdf
N1  - Author contact info:
Josh Lerner
Harvard Business School
Rock Center 214
Boston, MA 02163
Tel: 617/495-6065
Fax: 617/496-7357
E-Mail: jlerner@hbs.edu
AB  - In this paper, we examine the determinants of control rights in technology strategic alliances between biotechnology firms and pharmaceutical corporations, as well as with other biotechnology firms.  We undertake three clinical studies and an empirical analysis of 200 contracts.  Consistent with the framework developed by Aghion and Tirole [1994], the allocation of control rights to the smaller party increases with its financial health. The empirical evidence regarding the relationship between control rights and the stage of the project at the time the contract is signed is less consistent with theoretical frameworks.
ER  -