Tensions Between Slow Large-Scale Research Joint Ventures and Fast-Paced Innovation

Research joint ventures (RJVs) have been popular in developed countries during the last decades. One of the reasons is the reliance of companies on external sources of innovation. Although there are numerous studies on the performance of RJVs, few studies have focused on large-scale ventures. This paper explores how company and research organization participants perceive the value of large-scale RJVs for innovation. Large-scale is broken down to first and second order dimensions of largeness, which are used to build a novel theoretical definition. The paper presents the results of a case study of two large-scale RJVs in the biotechnology sector. The primary case is the Future Biorefinery programme: a five-year, 50-million euro program with over 10 company and 13 research organization partners in Finland. The secondary case is the Energy Biosciences Institute, which was planned to be a 10-year, 500-million dollar program with one company and three research organization partners in the USA. The data consists of 20 semi-structures interviews conducted between 2011 and 2015 with various participants of the two programs and a 10-month period of observation at the Energy Biosciences Institute. The findings highlight the tensions that arise in large-scale RJVs. While largeness was seen as central to the creation of otherwise unattainable value, it was simultaneously seen as a source of challenges that constrain the benefits of participation. The perceived "slowness" (e.g. long timeframe of the overall objectives) was a source of frustration for companies that prioritize short-term goals (e.g. new product development). This study provides insight for company and research organization participants of future large-scale RJVs on how to maximize the unique benefits enabled by largeness while avoiding some of the pitfalls. Furthermore, the study has important implications for public funding organizations that support large-scale RJVs in hopes of boosting innovation.