MS 58 IGNOU MBA Solved Assignment - Discuss the rationale of partnership in innovation and R&D. Explain the different types of partnership for this purpose.

Discuss the rationale of partnership in innovation and R&D. Explain the different types of partnership for this purpose.

Ans :           

Dr. Carlos J. Haertel, Managing Director, GE Global Research Center Europe shared his views on the roles of corporate R&D and the rationale for R&D partnerships at the recent World Innovation Conference in Cannes. Here you get the bullet points:

Roles of Corporate R&D

• Reaching across disciplines

• Spreading technology across the company

• Specialized in tackling the New

• Recruiting top technologists

Rationale for R&D partnerships

Cost

• leveraging resources, access government funding
• tapping into existing capabilities & expertise • innovating along the value chain, tying in customers & suppliers • fresh ideas, diverse perspectives, alternative business models A general partnership is a partnership with onlygeneral partners. Each general partner takes part in the management of the business, and also takes responsibility for the liabilities of the business. If one partner is sued, all partners are held liable. General partnerships are the least desirable for this reason. A limited liability partnership (LLP) is different from a limited partnership or a general partnership, but is closer to a limited liability company (LLC). In the LLP, all partners have limited liability.Think Creatively

• Use a wide range of idea creation techniques (such as brainstorming)

• Create new and worthwhile ideas (both incremental and radical concepts)

• Elaborate, refine, analyze and evaluate their own ideas in order to improve and maximize creative efforts

Work Creatively with Others

• Develop, implement and communicate new ideas to others effectively

• Be open and responsive to new and diverse perspectives; incorporate group input and feedback into the work

• Demonstrate originality and inventiveness in work and understand the real world limits to adopting new ideas

• View failure as an opportunity to learn; understand that creativity and innovation is a long-term, cyclical process of small successes and frequent mistakes

Implement Innovations

• 
Act on creative ideas to make a tangible and useful contribution to the field in which the innovation will occur

Speed & Quality

Get to Market

Creativity

When Haertel talked about open innovation, he used the below image to emphasize that partnering and thus open innovation needs to go beyond the co-ideation phase in order to get the full benefits. I fully agree on this.

The term "partnership" has changed over the years, as business people have come to add new features to the old business form. These new partnership types are intended to help mitigate the liability issues with partnerships. The three most used partnership types are listed here, with their features, to help you decide which type you might want to use.

Answer:

General Partnership

Limited Partnerships A limited partnership includes both general partners and limited partners. A limited partner does not participate in the day-to-day management of the partnership and his/her liability is limited. In many cases, the limited partners are merely investors who do not with to participate in the partnership other than to provide an investment and to receive a share of the profits.

Limited Liability Partnerships

An LLP combines characteristics of partnerships and corporations. As in a corporation, all partners in an LLP have limited liability, from errors, omissions, negligence, incompetence, or malpractice committed by other partners or by employees. Of course, any partners involved in wrongful or negligent acts are still personally liable, but other partners are protected from liability for those acts.

In recent years, the limited liability company has supplanted the general partnership and the limited partnership, because of the limits of liability. But there are still cases in professional practices in which some partners want to be limited in scope of duties and they just want to invest, having the liability protection.