Does Partnering Pay Off? - Stock Market Reactions to Inter-Firm Collaboration Announcements in Germany

The dramatic increase in interorganizational partnering in the last two decades raises questions for scholars and managers regarding the value impact of inter-firm collaborations. Using event study methodology, this paper tests whether stock market reactions differ when a collaboration formation or termination is announced. In addition, the study provides an in-depth analysis of potential determinants of stock market reactions to collaboration formation announcements. The sample consists of 1037 announcements in German stock markets from 1997 to 2002. The results show that an unexpected termination announcement decreases firm valuation, and a formation announcement increases firm valuation. Further, certain collaborations are more favorable than others, depending on firm industry, age, size, collaboration constellations, and equity versus non-equity investment in partner firm. The results open avenues for further research on partnering strategies

Can’t Buy Me Rights! The Contractual Structure of Asymmetrical Inter-firm Collaborations

The efficient allocation of control rights in inter-firm collaborations is a widely emphasized issue. In this paper, I empirically identify control rights and the allocation of these rights using a unique survey data set on collaborations between biotechnology and pharmaceutical firms. Fifteen control rights are identified to make up the structure of deals with five rights being the items of contention in deal making (ownership of patents, production, further development of the technology, the right to manage the collaboration, and the right to market universally). I find that the assignment of control rights is related to the bargaining position of firms and incentive issues. Hence, goliaths –pharmaceutical incumbents–subrogate critical rights to the new ventures when the final outcome of the project is depending on the venture’s effort

Does Partnering Pay Off? - Stock Market Reactions to Inter-Firm Collaboration Announcements in Germany

The dramatic increase in interorganizational partnering in the last two decades raises questions for scholars and managers regarding the value impact of inter-firm collaborations. Using event study methodology, this paper tests whether stock market reactions differ when a collaboration formation or termination is announced. In addition, the study provides an in-depth analysis of potential determinants of stock market reactions to collaboration formation announcements. The sample consists of 1037 announcements in German stock markets from 1997 to 2002. The results show that an unexpected termination announcement decreases firm valuation, and a formation announcement increases firm valuation. Further, certain collaborations are more favorable than others, depending on firm industry, age, size, collaboration constellations, and equity versus non-equity investment in partner firm. The results open avenues for further research on partnering strategies.

Can’t Buy Me Rights! The Contractual Structure of Asymmetrical Inter-firm Collaborations

The efficient allocation of control rights in inter-firm collaborations is a widely emphasized issue. In this paper, I empirically identify control rights and the allocation of these rights using a unique survey data set on collaborations between biotechnology and pharmaceutical firms. Fifteen control rights are identified to make up the structure of deals with five rights being the items of contention in deal making (ownership of patents, production, further development of the technology, the right to manage the collaboration, and the right to market universally). I find that the assignment of control rights is related to the bargaining position of firms and incentive issues. Hence, goliaths –pharmaceutical incumbents–subrogate critical rights to the new ventures when the final outcome of the project is depending on the venture’s effort.contracts; performance; inter-firm collaboration; biotechnology

Information-Sharing in Academia and the Industry: A Comparative Study

This paper investigates how scientists decide whether to share information with their colleagues or not. Detailed data on the decisions of 1,694 bio-scientists allow to detect similarities and differences between academia-based and industry-based scientists. Arguments from social capital theory are applied to explain why individuals share information even at (temporary) personal cost. In both realms, the results suggest that the likelihood of sharing decreases with the competitive value of the requested information. Factors related to social capital, i.e., expected reciprocity and the extent to which a scientist's community conforms to the norm of open science, either directly affect information-sharing or moderate competitive interest considerations on information-sharing. The effect depends on the system to which a scientist belongs

Cluster Performance reconsidered: Structure, Linkages and Paths in the German Biotechnology Industry, 1996-2003

This paper addresses the evolution of biotechnology clusters in Germany between 1996 and 2003, paying particular attention to their respective composition in terms of venture capital, basic science institutions and biotechnology firms. Drawing upon the significance of co-location of "money and ideas", the literature stressing the importance of a cluster's openness and external linkages, and the path dependency debate, the paper aims to analyse how certain cluster characteristics correspond with its overall performance. After identifying different cluster types, we investigate their internal and external interconnectivity in comparative manner and draw on changes in cluster composition. Our results indicate that the structure, i.e. to which group the cluster belongs, and the openness towards external knowledge flows deliver merely unsystematic indications with regard to a cluster's overall success. Its ability to change composition towards a more balanced ratio of science and capital over time, on the other hand, turns out as a key explanatory factor. Hence, the dynamic perspective proves effective illuminating cluster growth and performance, where our explorative findings provide a promising avenue for further evolutionary research.Cluster evolution; dynamic perspective; basic science; venture capital; biotechnology; Germany

The Multiwavelength Survey by Yale-Chile (MUSYC): Deep Medium-Band optical imaging and high quality 32-band photometric redshifts in the ECDF-S

We present deep optical 18-medium-band photometry from the Subaru telescope over the ~30' x 30' Extended Chandra Deep Field-South (ECDF-S), as part of the Multiwavelength Survey by Yale-Chile (MUSYC). This field has a wealth of ground- and space-based ancillary data, and contains the GOODS-South field and the Hubble Ultra Deep Field. We combine the Subaru imaging with existing UBVRIzJHK and Spitzer IRAC images to create a uniform catalog. Detecting sources in the MUSYC BVR image we find ~40,000 galaxies with R_AB<25.3, the median 5 sigma limit of the 18 medium bands. Photometric redshifts are determined using the EAZY code and compared to ~2000 spectroscopic redshifts in this field. The medium band filters provide very accurate redshifts for the (bright) subset of galaxies with spectroscopic redshifts, particularly at 0.1 < z 3.5. For 0.1 < z < 1.2, we find a 1 sigma scatter in \Delta z/(1+z) of 0.007, similar to results obtained with a similar filter set in the COSMOS field. As a demonstration of the data quality, we show that the red sequence and blue cloud can be cleanly identified in rest-frame color-magnitude diagrams at 0.1 < z < 1.2. We find that ~20% of the red-sequence-galaxies show evidence of dust-emission at longer rest-frame wavelengths. The reduced images, photometric catalog, and photometric redshifts are provided through the public MUSYC website.Comment: 19 pages, 14 image

Cluster Performance reconsidered: Structure, Linkages and Paths in the German Biotechnology Industry, 1996-2003

This paper addresses the evolution of biotechnology clusters in Germany between 1996 and 2003, paying particular attention to their respective composition in terms of venture capital, basic science institutions and biotechnology firms. Drawing upon the significance of co-location of "money and ideas", the literature stressing the importance of a cluster's openness and external linkages, and the path dependency debate, the paper aims to analyse how certain cluster characteristics correspond with its overall performance. After identifying different cluster types, we investigate their internal and external interconnectivity in comparative manner and draw on changes in cluster composition. Our results indicate that the structure, i.e. to which group the cluster belongs, and the openness towards external knowledge flows deliver merely unsystematic indications with regard to a cluster's overall success. Its ability to change composition towards a more balanced ratio of science and capital over time, on the other hand, turns out as a key explanatory factor. Hence, the dynamic perspective proves effective illuminating cluster growth and performance, where our explorative findings provide a promising avenue for further evolutionary research

To be financed or not : the role of patents for venture capital financing

This paper investigates how patent applications and grants held by new ventures improve their ability to attract venture capital (VC) financing. We argue that investors are faced with considerable uncertainty and therefore rely on patents as signals when trying to assess the prospects of potential portfolio companies. For a sample of VC-seeking German and British biotechnology companies we have identified all patents filed at the European Patent Office (EPO). Applying hazard rate analysis, we find that in the presence of patent applications, VC financing occurs earlier. Our results also show that VCs pay attention to patent quality, financing those ventures faster which later turn out to have high-quality patents. Patent oppositions increase the likelihood of receiving VC, but ultimate grant decisions do not spur VC financing, presumably because they are anticipated. Our empirical results and interviews with VCs suggest that the process of patenting generates signals which help to overcome the liabilities of newness faced by new ventures

CANDELS: The Cosmic Assembly Near-infrared Deep Extragalactic Legacy Survey - The Hubble Space Telescope Observations, Imaging Data Products and Mosaics

This paper describes the Hubble Space Telescope imaging data products and data reduction procedures for the Cosmic Assembly Near-IR Deep Extragalactic Legacy Survey (CANDELS). This survey is designed to document the evolution of galaxies and black holes at $z\sim1.5-8$, and to study Type Ia SNe beyond $z>1.5$. Five premier multi-wavelength sky regions are selected, each with extensive multiwavelength observations. The primary CANDELS data consist of imaging obtained in the Wide Field Camera 3 / infrared channel (WFC3/IR) and UVIS channel, along with the Advanced Camera for Surveys (ACS). The CANDELS/Deep survey covers \sim125 square arcminutes within GOODS-N and GOODS-S, while the remainder consists of the CANDELS/Wide survey, achieving a total of \sim800 square arcminutes across GOODS and three additional fields (EGS, COSMOS, and UDS). We summarize the observational aspects of the survey as motivated by the scientific goals and present a detailed description of the data reduction procedures and products from the survey. Our data reduction methods utilize the most up to date calibration files and image combination procedures. We have paid special attention to correcting a range of instrumental effects, including CTE degradation for ACS, removal of electronic bias-striping present in ACS data after SM4, and persistence effects and other artifacts in WFC3/IR. For each field, we release mosaics for individual epochs and eventual mosaics containing data from all epochs combined, to facilitate photometric variability studies and the deepest possible photometry. A more detailed overview of the science goals and observational design of the survey are presented in a companion paper.Comment: 39 pages, 25 figure