Strategic Partnerships Work - Sometimes

"Northwestern's Kellogg School of Business has a web site called 'Kellogg Insights' that posts research done by their professors. They recently highlighted a study called 'Compete or Cooperate - Choosing the Right Commercialization Strategy as a Technology Start-Up'. The study authors investigated the commercializaton strategies of 118 start-up companies across 5 economic sectors. They found that cooperation is a good strategy for start-ups when one or more of three conditions exist for the start-up:

1) The firm has a high degree of control over its intellectual property rights
2) The firm enjoys low deal transaction costs
3) There is a high sunk cost requirement for the firm to compete in its industry ..."

Read more in this Small Biz Labs post from which the foregoing was quoted.