Using a survey of more than 1000 German investment projects in Central and Eastern Europe this
study analyses the strategies of international joint ventures. Their risks and in particular
their innovative potential is investigated. As a statistical tool for the analysis of share
equations the conditional Tobit model is introduced. The theoretical base is a continuous time
full information model of a joint venture. Surprisingly sufficient and necessary conditions
for joint venture instability and technology transfer can be derived. The survey is used to
apply the introduced concepts and to demonstrate the validity of the approach empirically.
