Final answer:
Two terms that describe companies cooperating to develop new technology are a research partnership and a joint venture. These collaborations provide strength in numbers, address common issues, and can benefit from governmental policies. Mergers, whether horizontal, vertical, or conglomerate, also represent companies joining forces for various strategic advantages.
Step-by-step explanation:
When two or more companies cooperate to pursue specific new technology development and bring together diverse skills and/or resources, the endeavors are known as a research partnership and a joint venture. In a research partnership, organizations collaborate on research and development projects to innovate or solve complex issues, whereas a joint venture is a strategic business agreement where two or more parties create a new business entity sharing resources, risks, and returns.
There are several reasons why companies might choose to collaborate in this manner:
- Strength in numbers: Combining resources can offer greater capability and competitive advantage.
- Common industry issues: Companies often face similar challenges and can pool their expertise to find solutions that benefit all.
- Governmental policies: Collaborations may be better positioned to influence and benefit from government policies.
Mergers are another form of business growth which can be horizontal, vertical, or form a conglomerate. In horizontal mergers, companies joining forces create more efficient operations or acquire new product lines. Vertical mergers allow companies at different stages of production to join, optimizing the supply chain, while conglomerates diversify company portfolios, potentially stabilizing profits.