Contracting for Research & Development (R&D) and the emergence of the fee-for-service model

One of the primary hurdles encountered by small, innovative companies and startups is the arduous task of advancing new technologies beyond their initial stages. Reaching commercial markets often requires access to specialized resources (i.e., complementary assets) related to R&D development and manufacturing. However, for startups investing in such resources at scale can be tremendously expensive and is often not feasible. So, do smaller innovative firms always have to relinquish the rights to valuable technologies to other industry players in control of complementary assets? The answer is no.