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Why Some Start-ups Choose Cooperation over Competition
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******************************** Why Some Start-ups Choose Cooperation over Competition http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=961 When faced with the challenge of getting its new AIDS drug, Fuzeon, on the market, Trimeris Inc., a small biotech company based in Durham, N.C., didn’t hire a sales force or marketing staff. Instead, it partnered with Hoffman-La Roche Inc., the Swiss pharmaceutical giant, to commercialize the drug. In a co-authored paper entitled, When Does Start-up Innovation Spur the Gale of Creative Destruction, Wharton management professor David Hsu argues that this sort of cooperation can work better in certain industries than the more traditional competitive model. It all depends on such factors as intellectual property rights, relationships with intermediaries and the need for sizeable investments.
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