With so much belt-tightening going on, pouring precious financial resources into partnerships with universities might seem an unnecessary extra. But think twice before cutting these long-term R&D investments: the money you save today could be the innovation, and consequently, the competitive edge, you lose tomorrow. The author examines the integral role university research can play in industry innovation. To enjoy the fruits of your alliance, your firm and your research partners must share complementary goals - and carefully lay the groundwork for a healthy and productive long-term relationship. The long haul is essential, he stresses, as the real value of these university links can be the unexpected results yielded over time. What's needed is a proper framework to balance the myriad issues involved, so that you can protect your firm from the competitive issues while leveraging the cooperative ones in these testing times.

Tools and Frameworks:
Presents a co-opetition framework, illustrating the correct sequence to consider when deciding when and with whom to partner on R&D projects, and how to balance key organizational factors.

Examples Cited:
Indra, Henkel, GlaxoSmithKline, Rolls-Royce, Procter & Gamble, Stadco

Research Basis:
Based on the author's consultancy work with the European Commission and Belgian government, as well as with company executives, on matters of innovation policy and strategy. One of his studies analyzed 842 Flemish manufacturing firms about their engagement in a variety of research partnerships with either universities or governmental research centers. Another looked at 52 R&D partnership projects worldwide started between 1998 and 2003 by ST Microelectrics, Europe's largest and one of the world's leading semiconductor manufacturers.

About the Author:
Bruno Cassiman is professor of strategy in the Strategic Management Department of IESE and in the Department of Managerial Economics, Strategy and Innovation at K.U. Leuven.