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The collaborations in the discovery phase mostly involve research centres and universities. Firm-to-firm collaborations often involve small and large firms. Small firms show advantages in this phase because of their flexibility and informal organization, whereas they are often weak in downstream phases of the process where the investments required are much higher. Therefore, a large firm may be interested in funding a research in a small firm and buy the result of it. Firm-to-firm collaborations usually occur when research methods are concerned. Usually there are few leading firms skilled in the use of a certain research approach. For example Affymax is the leading company in combinatorial chemistry, which is the basic discipline for the high throughput screening approach.
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