7. Effective Innovation Control Mechanisms: Evidence from EU R&D Collaboration

This chapter explores the intricate landscape of EU-funded R&D consortia, focusing on the dynamics of management control (MC) mechanisms and their impact on collaboration performance. It delves into the challenges and strategies for effective innovation management in such complex collaborative environments, highlighting the importance of combining organizational, economic, and social-based mechanisms. The study reveals that MC mechanisms operate independently, suggesting a package approach is more suitable for R&D collaborations. It also underscores the significance of contextual variables, particularly relational risks, in moderating the effectiveness of MC mechanisms. The findings indicate that formal agreements are crucial when dependence risk is high, while opportunism risks can be mitigated by both formal contracts and trust. Interestingly, the presence of opportunism was found to positively moderate the impact of trust on performance, indicating that trust remains a vital component even in the face of opportunistic behavior. This dual reliance on formal and informal controls enhances the overall performance of R&D consortia, ensuring that collaborations can navigate the complexities and uncertainties inherent in innovation processes.