Abstract
Entrepreneurial companies in technologically intensive industries must make critical decisions concerning product development. A typical strategy pursued by these firms is that of collaborative arrangements. The purpose of this investigation is to explore the implications of alternative collaborative arrangements on value-creation in biotechnology companies. This investigation represents a fine grained approach to evaluating the impact of collaborative arrangements on market value as the authors have the information to code each observation at very specific levels. The outcome of the study will have implications for the entrepreneurial managers who are considering entering into a collaborative arrangement.