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When trying to research deeper into the patterns of Centrope cooperation I found different determinants for the choice of transnational partners among firms that cooperate in R&D. In particular vertical cooperation possibilities influenced the propensity of firms to develop new products or enter transnational, neighboring markets. Horizontal cooperation still face obstacles albeit generally useful when expanding the market or trying to move up the supply chain.

Finding the right partners and establishing patterns to help others find the right pick is among CITT objectives. But in particular, the coordination of two or more partners, goal conflicts, lack of trust and understanding or cultural differences make the right choice a difficult venture prior to any cooperation agreement. CITT is a EU-funded (seventh framework) project that seeks to foster IT transfer in between the Centrope region and is designed to unleash cooperation potential within these proximate regions; using the different regional, complementary advantages to create synergy effects.

Whenever working on partnerships, I figured that mid-size companies displayed a greater interest to be included into cooperative agreements as organizational forms involving technological development; namely when it comes to developing software and distributing it to a developing Centrope clientele. Preferably in the mid-tech sector though, since cross-border cooperations still have to build more trust and have to overcome partners’ mutual fears of intellectual property theft. Most of them followed, however, a resource-based approach, driven by a greater necessity to join complementary resources and lower costs and risks. The latter has been more difficult when trying to approach larger companies who are just less in need of cooperation – or so presume.

This notion actually seems to coincide with studies that have suggested that alliance benefits include cost reduction, risk sharing, access to financial capital, complementary assets, improved capacity for rapid knowledge transfer within symbiotic cooperation of associated and complementary firms that pool or exchange resources while each contributing different qualities.

The vertical cooperation has been easier to implement than horizontal cooperation; maybe because cooperation with rivals is still hampered by lacking uniform structures to ensure IPRs.

Another challenge is the cooperation in high-tech sectors, namely whenever the areas concern similar cutting-edge products of respective partners’ product portfolio. I experienced massive reluctance by neighboring countries’ companies when trying to jointly finish the development of their most promising technology; despite the obvious inability to reach the marketable stage on its own.

Although most cooperation agreements are driven by the logic of strategic resource needs mutual trust and cultural differences still remain as obstacles. Mostly when transferring knowledge from companies based in “new” EU member as compared to inter EU 15 exchange. A CEE partner with limited marketing experience can be especially reluctant to disclose and transfer knowledge even though this is crucial when marketing innovation is Western European markets. My experiences in the US were largely more positive in this area.