Joint Development vs Joint Venture : GREAT QUESTION!!!
No simple answer, but I'll do my best : We live in a business world of collaboration, speed, agility and refinement. Both oppertunities and pitfalls are endless, bottom-line I would start with the following.....
Does my potential partner add multiple value to my business / product or service?
Does the value of the 2 as 1 multiply our speed / point of difference, competitive edge and profitability?
Are the values of my organization matched to the values of theirs?
Is our strategic vision and growth / future plan supportive, alligned / compatible?
Is there complete trust between all parties?
Is there proof that what they are promising to bring can be delivered?
If the answers to the above are all yes, I would considerate entering into a JD with the intention to J.V, merge or share swap (contracted with a NDA and Non-Compete), on conditions of delivery of certain milestones, I would agree up front documented value / split in that agreement, expectations clearly defined with time lines for both parties, agreement of costs and liability.
Most importantly; provisions to cancel, dissolve or end the JD and/or JV and most importantly exit clauses. Most people spend a lot of time on how to enter partnership, mergers or JDs and no where near enough time on how to terminate, end or complete that relationship so instead of amicable parting in mutual agreed benefit, there is often dispute and waisted energy / money and time.