Risk and trust in cross-sector R&D projects

Abstract

The Cooperative Research Centres are hybrid organizations at the leading edge of change in Australia's research culture and are key elements in the new knowledge infrastructure contributing to techological innovation. The paper presents findings from a qualitative study of CRC managers' perceptions and management of downside risk in commercially-focused R&D projects. CRC managers deal with both performance risks (arising from uncertainties about achieving goals) and relational risks (arising from collaborative relationships). They do so through formalisation, the selection of people with desirable characteristics, and the building of relationships. Underlying these risk mitigation strategies is the formation of trust (the willingness to rely on a partner in whom one has confidence), and this occurs at both the interorganizational and project levels.