Strategies for Heterogeneous R&D Alliances of In Vitro Diagnostics Firms in Rapidly Catching-Up Economies

Abstract

Most developed countries already have high-quality in vitro diagnostic (IVD) techniques for diseases, but developing countries often do not have access to these technologies and cannot afford them. Enabling firms to leverage external resources to optimize their research and development (R&D) performance has become one of the most critical issues for small and medium-sized late-coming IVD firms. R&D alliances, especially heterogeneous alliances, are necessary for releasing the resource limitations of late-coming small and medium-sized enterprises (SMEs) and reaching the metaoptimum of the R&D performances. However, to the authors’ knowledge, a few, if any, previous studies have investigated the key success factors and strategies of heterogeneous alliances in the IVD industry. Therefore, the authors aim to define the critical factors for evaluating and selecting strategies for heterogeneous alliances in the IVD industry. A Decision-Making Trial and Evaluation Laboratory (DEMATEL)-based analytic network process (DANP) was proposed to prioritize the weights associated with the evaluation criteria. Then, a heterogeneous R&D alliance strategy was derived from the compromise ranking based on the modified VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) method. An empirical study of major Taiwanese IVD firms’ evaluation and selection of heterogeneous R&D alliance strategies will be used to reveal the practicability of the analytic framework. Based on the analytic results, the joint venture strategy is the most suitable heterogeneous R&D alliance strategy for IVD firms in rapidly catching-up economies. These results can serve as the basis for heterogeneous R&D alliance strategy definitions in the IVD industry in the future.