Abstract
Alliance and NPD evolve in a dynamic and interrelated manner so that the management of collaborative NPD-alliances becomes the management of an evolving cycle of two interrelated process loops. Collaborative NPD-alliances evolving around the ‘outer cycle’ of alliance management and the ‘inner cycle’ of new product development present a challenge of managing the dual logic of both partnering and innovation The dual need for flexibility and stability in NPD-alliances is reflected in changing governance needs, and ongoing alliance and new product learning. Managing variables and governance choices unique at the critical intersection points of two cycles is of importance in determining the continuance of the alliance and success of the NPD-project.