Collaborative ventures between U.S. and foreign manufacturing firms

Abstract

The recent upsurge in collaborative ventures involving U.S. and foreign manufacturing firms in research, production, and marketing has raised questions concerning the causes of these novel methods of organizing innovation and the consequences of these activities for the competitiveness of U.S. firms. This paper surveys recent trends and implications in collaboration between U.S. and foreign manufacturing firms, drawing on a comparative study of these activities in eight manufacturing industries. The causes of recent growth in international collaboration are both technological and policy-related. The structure of collaboration, the activities incorporated into collaborative ventures, and the amount and direction of technology transfer between U.S. and foreign firms all vary across industries. As a result, the case for any comprehensive policy governing such collaborative ventures is weak. Moreover, the future role and effects of collaborative ventures will vary considerably across U.S. industries.