Strategic alliance

A strategic alliance is a joint collaboration between two or more entities in order to achieve common objectives. For example, two companies could pool their research efforts to jointly produce new technology, which they then share. This approach can result in more rapid attainment of objectives, possibly at a lower cost. In an alliance, the participating entities do not contribute resources to a legally separate joint venture that is tasked with the objectives of the founding parties. Instead, the original entities work together directly; this is a less permanent relationship than a joint venture, since there is no mingling of resources within a legal entity.