Science-industry R&D cooperation effects on firm’s appropriation strategy: The case of Argentine biopharma

The purpose of this paper is to show how science-industry R&D cooperation (SIRC) generates effects on the strategy developed by firms to appropriate the benefits of innovations. Given the plurality of cooperation patterns between firms and public R&D institutions and the variety of appropriation mechanisms used by firms to protect generated knowledge or to strengthen their market position, this paper investigates to what extent different forms of cooperation are associated with different effects on appropriation strategy.

As evidence of this, the authors carry out a multiple case study, covering nine biopharmaceutical Argentine firms whose innovation projects are developed in cooperation with public R&D institutions. Using critical dimensions identified by public-private R&D cooperation literature, the paper analyzes the characteristics of cooperation in the cases studied, looking for different patterns. Given the existence of various appropriation mechanisms identified by appropriability literature, the paper analyzes how firms use (or not) those mechanisms within the specific context of jointly generated innovation.

The paper shows that SIRC generates opposing effects on the various appropriation mechanisms used by firms, both challenging and strengthening them. Likewise, the identification of three cooperation patterns in Argentine biopharmaceutical sector, namely, contract R&D, internalization and coordination, allows appreciating how each pattern affects differently the appropriation mechanisms used by firms, being the coordination one, the most functional to the appropriation strategy of firms analyzed.

The arguments presented here are necessarily limited to the biopharmaceutical Argentine sector, which is strategic to the country, for accumulated capabilities in scientific and business aspects. The analysis could be enriched by extending it to other industries with similar innovation characteristics and to other countries, where patents have a similar weight (emerging countries) or a different one (developed countries).

Innovation and public-private collaboration policies may benefit from the analysis presented here, which helps to assess advantages and challenges of different SIRC logics on firms’ appropriation issues and to considerate which aspects allow cooperation and appropriation combining in a more virtuous form.

There is no paper that explicitly examines the effects generated by different SIRC patterns on the appropriation strategy of firms, conceived as a combination of different mechanisms which may include patents but is not limited to them.