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The influence of R&D investment on the use of corporate venture capital: An industry-level analysis

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  • Sahaym, Arvin
  • Steensma, H. Kevin
  • Barden, Jeffrey Q.

Abstract

We consider how internal research and development (R&D) influences the use of corporate venture capital (CVC) and how this relationship varies across industries. We find that, in general, R&D investments increase the number of CVC deals in an industry. We also find that R&D investment has a particularly strong influence on the use of CVC in industries that are growing rapidly and changing technologically. Our analysis provides greater clarity on the relationships involving R&D and CVC in the presence of contingencies by integrating insights of absorptive capacity and real options reasoning.

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  • Sahaym, Arvin & Steensma, H. Kevin & Barden, Jeffrey Q., 2010. "The influence of R&D investment on the use of corporate venture capital: An industry-level analysis," Journal of Business Venturing, Elsevier, vol. 25(4), pages 376-388, July.
    • Handle: RePEc:eee:jbvent:v:25:y:2010:i:4:p:376-388
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    10. Michele Cincera & Anabela Santos, "undated". "Innovation and Access to Finance," IRMO Occasional Papers 6, Institute for Development and International Relations, Zagreb.
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