Asset protection in R&D alliances: asset type and contract functions.

Little is known about the how contractual functions protect different types of assets. By analyzing contract functions and by distinguishing between property- and knowledge-based assets, this paper investigates how contracts can reduce contractual hazards linked to the leakage risk and help firms protect these assets. The empirical analysis is based on survey data on R&D alliances in the U.S. biotechnology sector. The results show that differences in the ability of the alliance partners to protect their own assets may be attributable to the matching of asset types with appropriate contract function. [ABSTRACT FROM AUTHOR]