Abstract: Many U.S multinational companies have been forced to revise their R&D budgets because of weak sales and the pressure to stay ahead from their global low-cost competitive rivals in Asia and Latin America. The article concludes that some of these companies have adopted a new approach of “ecosystem investing” in which large companies such as Johnson & Johnson, General Electric, General Motors, and Google are creating strategic partnerships with startups and small companies whose technologies and skills can help them expand their own capabilities. This approach has helped large companies to tap into new sectors such as genomics and biotechnology, advanced robotics, lithium ion batteries, semiconductor manufacturing, and nanotechnology.

Published: Strategy+Business, January 24, 2011

Authors: William J.Holstein

Link: Strategy+Business