Explaining international R&D alliances and the role of governments

Globalisation, alliance capitalism and R&D-intensive value adding activities are hallmarks of economic activity in advanced industrial countries. National governments have responded to these changes by pursuing policies promoting "techno-nationalism" which includes fostering R&D investment by national champions. First, we wish to inquire, from the firm's perspective, why they have an increasing propensity to undertake R&D alliances, with particular focus on international alliances. Second, we try and understand the role of governments in promoting and engaging in the generation and diffusion of intellectual capital in general, and in facilitating inter-firm technological alliances in particular. Third, we wish to evaluate the efficacy of techno-nationalism, in light of the welfare and social responsibilities of governments, particularly in an age of globalisation. We suggest that the role of government is best restricted to L-advantage augmentation, basic research investment and improving international coordination of technology markets.