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Technological Alliance and Cognitive Distance

One of main motive in technological alliance formation is learning. The value of learning is affected by the cognitive distance between cooperation partners. It is not advantaged to improve the interorganizational learning value if the cognitive distance is too large or too small. The paper uses data from the firm's technological alliances of China Electronic and information industry. The key finding is that it has an inverted U-shaped relation between technological CD and alliance formation, but it has a U-shaped relation between organizational CD and alliance formation.