Strategic partnerships for AI-driven drug discovery: The role of relational dynamics.

Artificial intelligence-driven drug discovery (AIDD) companies hold significant promise for transforming pharmaceutical development, yet little is known about how they manage partnerships with established pharmaceutical firms. To address this research gap, our study explores how AIDD companies develop and leverage relational capabilities to enhance collaboration effectiveness. Through a case study approach, we focus on four key relational aspects: identifying complementary capabilities, establishing effective governance mechanisms, creating relationship-specific assets, and developing interfirm knowledge-sharing routines. Our findings demonstrate that particularly effective governance of intellectual property is essential for partnership success. We offer actionable recommendations for AIDD companies to strengthen collaborations, thereby contributing to the realization of AI's potential in drug discovery.