R&D COLLABORATION WITH COMMON PARTNERS AND KNOWLEDGE LEAKAGE TO RIVALS: THE ROLE OF IP LITIGATION

We argue that knowledge leakage may occur to rival firms through indirect ties, i.e., if rivals collaborate on R&D with a common partner, but that firms with an aggressive patent litigation strategy may be able to restrict such knowledge spillovers. We expect knowledge leakage to be more prominent, and litigation strategy to be less powerful, when the common partner is a university or public research institution adhering to the open science paradigm, compared with when the common partner is another (non-rival) firm. Patent citation analysis among dyads of leading pharmaceutical firms provides qualified support for these hypotheses.