Coopetition comes from two words which are: cooperation and competition. So in simple terms, Coopetition means collaboration with competitors for mutual benefits. It is the act of cooperation between competing companies by forming a designed to help both companies. The benefits might present themselves in various areas: overall sales, market share, new product development, etc.
Why are companies using coopetition in technological innovation?
Several interrelated factors are drivers for high tech firms and encourage them to engage in coopetition:
- SHORTER PRODUCT LIFE CYCLES: Due to quickly changing consumer preferences and fast changes in technology. companies must invest more in innovation to keep up with the pace.
- INCREASING R&D COST AND CAPITAL COSTS: These costs are very high in high technology companies. They contribute to a considerable percentage of the total expenditure. Also, there is always considerable uncertainty in Research. And produc (...) Read more? Sign up for free
23-6-2020
