Strategies for collaboration agreements focusing on innovation

Abstract

Collaborations focusing on innovation are often born with the conception of a technology, typically as a result of one side’s research effort. Collaborations for innovation can also be made through a deliberate process of identifying strategic synergies that should, with appropriate incentives, lead to jointly created technology in the selected area of interest.
The predominant factors motivating the parties to collaborate will heavily influence the agreement structure selected to support the collaboration. If a specific technology was “born†prior to the collaboration, the parties will most likely memorialize their collaboration in an agreement specific to the joint development and commercialization for that technology. In contrast, when the parties are entering the collaboration to stimulate innovation, the agreement is often structured as a master agreement.
Regardless of the agreement structure, there are two keys to a successful collaboration for innovation: (1) effective communication; and (2) balancing incentives.