The contribution of corporate ventures to radical innovation
AbstractEstablished firms often face significant obstacles to innovation. As a solution, it has been suggested to form corporate ventures. Based on a sample of corporate and independent ventures in German manufacturing, we show that corporate ventures are more innovative than the control group, i.e. the independent ventures. In particular, corporate ventures are more successful at developing radical innovations. This effect, however, decreases with the ventures' degree of ownership concentration. We conclude that corporate ventures with a high ownership concentration are more likely to be controlled and monitored by their corporate sponsors, resulting in less favorable conditions for radical innovation. --
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Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 10-060.
Date of creation: 2010
Date of revision:
corporate entrepreneurship; start-ups; radical innovation;
Find related papers by JEL classification:
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-16 (All new papers)
- NEP-ENT-2010-10-16 (Entrepreneurship)
- NEP-INO-2010-10-16 (Innovation)
- NEP-SBM-2010-10-16 (Small Business Management)
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- Johannes Dick & Katrin Hussinger & Boris Blumberg & John Hagedoorn, 2013.
"Is success hereditary? Evidence on the performance of spawned ventures,"
Small Business Economics,
Springer, vol. 40(4), pages 911-931, May.
- Dick Johannes & Hussinger Katrin & Blumberg Boris & Hagedoorn John, 2011. "Is Success Hereditary? Evidence on the Performance of Spawned Ventures," Research Memorandum 034, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
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