What is Technical Capability

This chapter seeks the answers to the following research question: Which are the challenges related to high tech R&D collaboration involving firms both from established and emerging economies? To answer this question, the Turkish jet fighter program is used as a case study. The study shows the chances to succeed are highly uncertain in this sector dominated by USA. Although Turkey acquired some level of R&D capability in previous defense R&D programs, the complexity of jet fighter development poses new challenges. Previous experiences indicate that technical capabilities are not sufficient, equally important is the formation of management capabilities. During the pre-development (concept) phase, Turkey chose to collaborate with Swedish Saab. The chapter discusses several challenges in this type of collaboration for a full-scale jet fighter development program. These challenges concern intra- as well as inter-organizational management, the organization of the technical development projects, and the design of appropriate industry governance structures.