Publications

Journal Article

Drawing on transaction cost economics and theory on externalities, the authors argue that when the realization of economic opportunity: (i) calls for industry-specific competencies, but entails significant positive externalities (i.e., implies specialized private actions with significant public benefits); (ii) is shrouded by high uncertainty to the private actors; and (iii) necessitates to private actors high governance costs for contracting, coordinating, and enforcing, then private-public alliances will be necessary for realizing the economic potential.

Thus, specialized resources, positive externalities, uncertainty, and governance costs are all jointly implicated in the authors' theory.