Volume 29, No. 8, 16-23. Therefore, many companies prefer to outsource those that they do not have from the onset of a development effort or other growth initiative. Companies commonly outsource access to markets, formulation expertise, process technology, application know-how, and manufacturing capability in this manner. Companies often underestimate the effort necessary to make JDAs work.
Negotiation lasts as long as it takes the parties to reach agreement on all fundamental issues.
Despite the difficulties inherent in using JDAs, they can significantly reduce the time and resources required to commercialize new products. In forming partnerships, it is important to assess the level of complexity the partnership will be able to address - in markets, technologies, and manufacturing. Use joint, tiered teams to provide a mechanism for conflict resolution and decision making. Invest enough time to identify, screen, and select an appropriate partner. Determine from the outset whether the potential partner has the required expertise.