While the existing literature on cooperative R&D projects between firms and public research institutes (PRI) has made valuable contributions by examining various factors and their influence on different outcome measures, there has been no investigation of cooperative R&D project success between firms and PRI from a product competitive advantage perspective. However, insights into the development of a meaningful and superior product (i.e., product competitive advantage) are particularly important in the context of cooperative R&D projects between PRI and (mainly small and medium-sized) firms in the biotechnology industry in response to increasing competition to raise capital funds necessary for survival. The objectives of this thesis are: (1) to elaborate the theoretical foundations which explain the achievement of a product competitive advantage in cooperative R&D projects between biotechnology firms and PRI, (2) to identify and empirically evaluate the determining factors for achieving a product competitive advantage in cooperative R&D projects between biotechnology firms and PRI, and (3) to show how cooperative R&D projects between biotechnology firms and PRI should be designed and executed to support the achievement of a product competitive advantage. To accomplish these objectives, a model of determinants of product competitive advantage in cooperative R&D projects between biotechnology firms and PRI is developed by drawing from the theoretical foundations of resource-based theory and information-processing theory. The model is evaluated using data from 517 questionnaires on cooperative R&D projects between at least one biotechnology firm and one PRI. The data are analyzed using variance-based structural equation modeling (i.e., PLS-SEM) in order to conduct hypotheses testing. The evaluation of the empirical data includes an additional mediation analysis and the comparison of effects in subsamples. The results demonstrate the importance of available resources and skills, as well as the proficient execution of marketing-related and technical activities for the achievement of a product competitive advantage in cooperative R&D projects between biotechnology firms and PRI. By identifying project-related and process-related factors affecting product competitive advantage and empirically testing their relationships, the research findings should be valuable for both researchers and practitioners. After discussing contributions and implications for research and practice, the present thesis concludes with limitations and avenues for future research.