Corporate Venture Capital

The United Kingdom has a relationship with discovery and innovation which, quite rightly, is a source of enormous national pride and hope. However, for all our capacity for scientific discovery, it is somewhat disconcerting that the UK has slipped so far behind other technological leaders like the United States in efforts to commercialise scientific discovery.

During the Industrial Revolution, Britain’s innovators were highly effective at sourcing the capital required to fund technological development. Since the Second World War, however, a gap has opened up between the UK and USA,
in large part due to America’s willingness to embrace forms of venture finance to fund innovation. Today the world’s most innovative regions – such as Silicon Valley, which struck upon the modern model of venture capital in the 1950s – are those where venture finance is found in abundance. This relationship
between access to venture finance, the flourishing of technological innovation, and the ability to deliver successful commercialisation is well established. Since the early 1990s, successive governments from both sides of the political
divide, have come to realise the value of venture finance and have energetically sought to redress this gap. To do so they have deployed a range of initiatives and agencies with the intent of capturing the potential of our capacity for innovation by unleashing a deluge of private capital. Policy after policy was
deployed with that aim of incentivising all equity investors to come to the party.

All it seems, except one.

Corporate Venture Capital (CVC) is the catch-all phrase used to describe a wide variety of equity investment undertaken by corporations. At its most basic level, CVC describes an equity investment made by a corporation, or its investment entity, into a high growth and high potential, privately-held businesses. This makes CVC appear very familiar to private venture capital VC, and in many ways they perform the same economic role – the identification and nurturing of the innovative businesses of the future. However, whilst the structure and practice of venture capital is very similar from firm to firm, the structure and practice of CVC is enormously diverse, as each unit is adapted to work harmoniously with its corporate parent’s culture and strategic objectives.

Developing an understanding of CVC’s role in the UK is important since CVC combines the impact of corporate balance sheets with business acumen and industry knowledge. CVC, therefore, has the potential for significant economic impact, but this potential is currently stifled by policy, regulatory barriers, and most of all, a lack of understanding of the role of CVC investment into high growth, typically early stage high tech, Small and Medium Enterprises (SMEs).

The efforts of successive governments to encourage angel and VC investors over the last decade has shown the value Ministers place on sources of private capital. For a period under the previous Labour Government, CVC investments were also incentivised via the Corporate Venture Scheme (CVS). However, the circumstances surrounding the decision by the Labour Government to discontinue the CVS when it came up for review in 2010, and the lack of CVC-specific policies from the current Coalition Government betray a lack of understanding of the industry, and create gaps in Government strategies to unlock sources of private investment for SMEs. On the one hand,
Ministers exhort businesses to get busy spending the money on their record breaking balance sheets, and on the other hand the Government appears unaware that it presides over policies which create hurdles and disincentives which hold back greater investment in high growth start ups.

A recent briefing from the professional services firm, Deloitte, calculated there was around £488bn in cash and equivalents sitting on the balance sheets of UK corporates. Nearly a third of this vast pile of cash has accumulated since the start of the recession. At the same time, the Government has identified gaps in the funding of SMEs and is rightly seeking private sector investment to plug them. Policymakers, therefore, must come to grips with CVC. They must develop an appreciation for its role as a source of equity investment, and they must understand the remarkable diversity of models and styles of investment behaviour and structure. The challenges are many, but if Government can develop sensible, supportive policies, CVC may well turn out to be ‘the missing piece’ they seek.

This is a republish of the NASSCOM Emerge blog: A Macro economy view point by Shrikrishna Prakash, Saravu prior to September 2008 market collapse & USD 700B bailout. It has played out.

Scenario
Around 80% of foreign exchange/trade transactions is denominated in US dollars(USD) and a majority of these in crude oil import export. Crude being a lever to control USD flow (back to US), its rise impacts balance of payment for net crude oil importers, inflation and increase in cost of capital for business. Hence stocks discovering its prices to the re-adjusted EPS. In December 2007 realized time was not far off for business to chase funds and Private Equity (PE) and not the other way round.

Wall Street Outcomes
The heady day’s perceived profits in instruments, are now ill-liquid assets. To improve liquidity, earlier banks sought petro USD’s, some consolidated within Wall Street and others are filing for bankruptcy. About USD 450 billion of illiquid assets from various banks crept into Freddie Mac & Fannie Mae. Freddie & Fannie had to be bailed out by the US Federal Reserve(Fed). Fed released more than USD 250 billion in emergency funding. Fed has to clean up its balance sheet. New laws are being enacted giving treasury powers to create market for ill-liquid assets, buy and sell assets to tune of USD 700 billion.

OTC USD derivatives as an enabler ?
Most of USD’s are derivative positions and are traded on secretive OTC. As one of the steps to arrest the USD decline, central banks led by Fed in a synchronized manner went long on USD to the point of triggering short covering and shoring up USD. Central banks long positions were/are in the money. Globally, institutional investors who went long USD post the short squeeze upsurge, will feel the long squeeze when the intervention impact reduces and USD starts depreciating. This will make them square off and take on losses. (Read from central banks, as the coordinated entities would have booked profits at USD highs and positioned to buy at lower levels).

USA’s borrowings are denominated in home currency and the above process will assist in shoring up current assets in Fed’s balance sheet helping even out the ill-liquid assets. The reduction in OTC leveraged USD and a better Fed balance sheet enables printing USD in large quantity, controlling inflationary pressures- strategic in the world order. The consumption story will continue.

Possibilities
As the effect of coordinated intervention reduces, the USD is expected to weaken. If countries consume more USD’s, it will help ease the equation, else crude will continue to remain as a lever.

If Fed’s balance sheet gets cleaned up with no great inflationary effect, USD could get stronger. However to reach that state, the implementation of new monetary framework will have the affect of a “Manthan”, a sanskrit word for churning of the ocean to obtain nectar, when consumed attains immortality.

India over the next 18–24 months is expected to reduce crude import to an extent of 40%, a result of increasing production from KG-D6 block. On this materializing, equivalent USD’s will find its way back, assuming India’s orders for importing nuclear reactors & ancillaries will not off-set the reduction. Industrialist Mr. Godrej believes India has the potential to be a net exporter aswell. All these means the RBI may build USD reserves helping maintain USD 80–20 balance. The rupee’s (INR) movement depends on above equation, ECB, FII money flows and the existing flow dynamics.

Closing Comments
USA on its part will manoeuvre back to maintain world order and invent new “alpha seeking opportunities”. “Manthan’s” impact on India, its domestic story in healthcare, materials, industrial’s, infrastructure, financial services and software product space will be keenly watched.

Disclaimer: Views expressed here are personal.

In this paper, we focus on the potential innovative benefits to corporate venture capital (CVC), i.e. equity investments in entrepreneurial ventures by incumbent firms. We propose that corporate venture capital programs may be instrumental in harvesting innovations from entrepreneurial ventures and thus an important part of a firm's overall innovation strategy. We hypothesize that these programs are especially effective in weak intellectual property (IP) regimes and when the firm has sufficient absorptive capacity. We analyze a large panel of public firms over a 20-year period and find that increases in corporate venture capital investments are associated with subsequent increases in firm patenting.

We thank the guest coeditor, Anil Gupta, two anonymous reviewers, for their valuable comments and suggestions on this and earlier versions of the paper. We also thank Corey Phelps and Shiva Rajgopal for methodological suggestions that helped improve the quality of our analyses.

This paper enlarges the scope of inter-organizational learning and strategic renewal research to the ongoing debate on whether companies should mainly try to exploit current trajectories rather than explore new opportunities. Scholars studying exploration and exploitation have been highlighting for long the essential trade-offs firms make in undertaking these activities offering significant support for models in which exploration and exploitation need not always be competing activities, but can and should be complementary. Little is known, however, about the specific mechanisms that drive firms' tendencies to engage in either activity or about whether and how they actually balance the two across organizational boundaries. Being an assortment of boundary spanning operations, the Corporate Venture Capital (CVC) context allows us to analyze how focal firms can articulate explorative and exploitative activities through internal and external resources. More precisely, we propose that firms could use CVC investments to resolve the exploration-exploitation tension overtime across their organizational boundaries. We test our theoretical model using patent and financial performance data for the entire population of U.S. public firms active in CVC investments over the period 1996-2006.

This paper introduces the special themed section on organizational interactions involving universities and firms that result in the commercialization of research and technology. Our objective is to shed light on some of the most vexing, yet under-researched predicaments research institutions encounter, despite their best efforts to advance commercialization. First, we synthesize and extend recent studies, including the papers in the special themed section. Next, we develop a taxonomy of modes of commercialization. Specifically, we consider internal approaches, quasi-internal approaches (e.g. incubators), university research parks, regional clusters, academic spin-offs and start-ups, licensing, contract research and consultancy, corporate venture capital, and open science and innovation. We also identify areas for further research at the individual (e.g. heterogeneity of entrepreneurial teams and experience; incentives), organizational and intra-university (e.g. corporate governance; nature of growth strategies; relationships with trading partners; boundary spanning activities) and technology levels (e.g. institutional context; reconfiguration of technology; valuation of technology).

This paper investigates the impact of open innovation on national systems of innovation. The open innovation concept has become widely established among scholars and practitioners. However, an overview of its impact on national innovation systems is still lacking. Given that the innovating firm is at the core of national innovation systems, a better understanding of shifting innovation strategies at the firm level is of fundamental importance to the actions of policy-makers within the national innovation systems framework. Based on the main analytical approaches of national innovation systems and the current state of open innovation research, we argue that open innovation practices have at least three critical effects on national systems of innovation: (a) they reinforce its importance; (b) they improve its effectiveness; and (c) they diversify its networks.► Open innovation reinforces the importance of national systems of innovation. ► Open innovation improves the effectiveness of national systems of innovation. ► Open innovation diversifies the networks used in national systems of innovation.

Firms tend toward local search when they continue to build on own technological knowledge. Therefore, technological exploration has usually been associated with some form of boundary spanning activities. In line with previous research this study focuses on organizational or external boundary-spanning exploration, but in contrast to previous studies, it distinguishes between explorative learning from partners and from non-partners. Partners are considered as organizations with whom a focal firm has some kind of external venturing relations, i.e. technological alliances, corporate venturing capital, or M&As. Central in the study is the dual role of these external corporate venturing relations and their effect on the two types of exploration. In explorative learning from partners, the external venturing relationships function as pipes to exchange information between the partners. In explorative learning from non-partners, partners may play a role as prisms. That is, they inform the focal firm about technological opportunities beyond its current network. The results of the empirical analysis confirm the dual role of the partners in advancing the two types of explorative learning. The results furthermore indicate that intermediate levels of technological distance between a focal firm and its partners foster explorative learning from partners, while low levels of technological distance enhances explorative learning from non-partners.

The objective of this paper is to examine the impacts of experience intensity, experience diversity and acquisitive experience on the development of selection and valuation capabilities that help the parent (investor) company generate higher short-term financial returns and improve long-term strategic performance. Based on our analysis of 2110 cases of CVC investments in the VenureXpert data base, we find that industry diversity of a CVC program's experience is positively related to its selection of portfolio companies with relatively high financial potential. The CVC program's experience intensity, stage diversity of its experience, and syndication improve its selection of portfolio companies with greater strategic potential. In addition, stage diversity may enhance valuation capability. We also find that experience accumulation is more effective when a CVC program invests in a portfolio company in the later stage rather than in the early stage.

Using a new European Commission-sponsored longitudinal dataset – the VICO dataset – we assess the impact of independent (IVC) and corporate venture capital (CVC) investments on the economic performance of European high-tech entrepreneurial firms during the period 1992-2010. After controlling for potential sources of endogeneity and selection bias, our results indicate that both IVC and CVC investments boost portfolio firms' economic performance. These effects are mostly due to an increase in real sales value. Moreover, the dynamics of the impact of VC investments on firms’ overall economic performance and its components – real sales value, real fixed assets, and real labor costs – differs depending on the type of investor. Finally, we do not detect any impact related to the syndication of investments by both IVC and CVC investors.

There is an established body of research that has examined the value-added provided by venture capitalists for their portfolio companies. More recent work has started to look at the comparable activities of corporate venture capitalists. However, to date, the value-added provided by these two types of investors for their portfolio companies has not been compared systematically. This study undertakes such an evaluation by comparing the social capital-based and knowledge-based forms of value-added provided by independent and corporate venture capitalists to their portfolio firms. Primary data from US technology-based new firms that had received both corporate venture capital and independent venture capital funding is analysed. This study demonstrates that the value-adding contributions of corporate venture capital and independent venture capital investors are different both in their origins and in their consequences. Independent VCs add value in helping raise additional finance, recruiting key employees and professionalizing the organization-early-stage establishment activities we term 'enterprise nurturing'. Corporate venture capitalists are superior in helping the young firm build commercial credibility and capacity, and in providing technological support-growth-focused activities termed 'commerce building'. Importantly, the two forms of value-added appear complementary. It is concluded that it is in the interests of both portfolio companies and their investors that both sources of advice and support are available.

Brazil is known to be a traditionally protectionist country, its trade policies have an eminently interventionist bias, with broad restrictions on free trade, whose impact is extremely harmful to economic development and national industrial performance. Despite the damage caused by protectionism; in Brazil, these practices remain on the agenda. Exaggerated interventionism leads the country to the opposite direction of the world trend which, over the last few years, has experienced an unprecedented advance, a consequence to a large extent of increased trade between countries. Brazil, isolated from the global integrationist spirit, does not benefit from the productivity gains associated with the global trends that have shaped the most competitive industrial production, including the integration of international trade and a fluid reallocation of resources between companies through the fragmentation of the value chains. Based on this scenario, the objective of this work is to analyze how the protectionist position adopted by Brazil in relation to the international market impacts country's process of industrialization.

Corporate venture capital (CVC) investments serve as interfi rm relationships that enable established fi rms to tap into emerging technology markets. Nevertheless, fi rms may also leverage their strategic alliances to this end. Does alliance formation reinforce or attenuate a fi rm's tendency to invest in entrepreneurial ventures? We introduce a resource-based perspective whereby resource complementarity and network resource visibility prompt a reinforcing association between CVC investment and alliance formation. In turn, external resource redundancy and internal resource allocation constraints yield an attenuating effect of alliance formation on CVC investment. Analyzing the alliances and CVC investments of 372 software fi rms during the 1990s, we reconcile these opposing arguments by revealing an inverted U-shaped association between CVC investment and alliance formation. Accordingly, the number of CVC investments fi rst increases, but then decreases, with the number of alliances formed. Moreover, the positive association between CVC investment and alliance formation diminishes as fi rms invest in their internal resource stocks, mature, and accumulate experience with prior CVC investments. We advance strategic entrepreneurship research by elucidating the tendency of established fi rms to engage in CVC investment and by unpacking the complex association between different types of interfi rm relationships that these fi rms leverage.

We hear a lot of tech in London, but what about the rest of the UK? Using a unique analytical toolkit, my latest research for the BVCA, "Tech Country", takes a deep dive into a handful of technology clusters from around the country to gain a greater understanding of their history, and their strength and weaknesses. The results have policy implications not just in the UK, but around the world.

Over the past decade, billions of dollars have been invested by established companies in entrepreneurial ventures-what is often referred to as corporate venture capital. Yet, there is little systematic evidence that corporate venture capital investment creates value to investing firms. Scholars have suggested that established firms face underlying challenges when investing corporate venture capital. Namely, structural deficiencies inherent in corporate venture capital may inhibit financial gains. However, firm value may still be created as a result of other benefits from investing-primarily providing a window onto novel technology. In this paper, we propose that corporate venture capital investment will create greater firm value when firms explicitly pursue corporate venture capital to harness novel technology. Using a panel of CVC investments, we present evidence consistent with our proposition. The findings are robust to various specifications and remain unchanged even after controlling for unobserved heterogeneity in investing firms. Our results have important implications for corporate venture capital in particular, and technology strategy in general. D (G. Dushnitsky)8 [email protected] (M.J. Lenox). 1 Tel.: +1 919 660 8025; fax: +1 919 681 6244. Journal of Business Venturing 21 (2006) 753 -772

Over the past decade, companies worldwide have used corporate venturing (CV) as a means of revitalizing their operations, building new capabilities, and achieving strategic renewal, creating value for shareholders. Business interest in CV has stimulated academic interest in the topic, resulting in a rapidly growing but fragmented body of literature. Despite the growing international scholarly interest in CV, researchers have devoted little effort to integrating prior findings in a cumulative fashion. As a result, studies do not build upon one another, making it difficult to gauge the progress being made in addressing the fundamental research questions related to CV. In this paper, we examine the literature on CV seeking to synthesize, integrate and link its key findings. To do so, we analyze this literature over the past decade to identify its major themes and research findings setting the stage for greater coherence in future research on CV. We give special attention to the challenges and rewards of theory building in future CV research. Our review clearly shows that CV is an area of scholarly inquiry that has important implications for managerial practice.

Brazil is known to be a traditionally protectionist country, its trade policies have an eminently interventionist bias, with broad restrictions on free trade, whose impact is extremely harmful to economic development and national industrial performance. Despite the damage caused by protectionism; in Brazil, these practices remain on the agenda. Exaggerated interventionism leads the country to the opposite direction of the world trend which, over the last few years, has experienced an unprecedented advance, a consequence to a large extent of increased trade between countries. Brazil, isolated from the global integrationist spirit, does not benefit from the productivity gains associated with the global trends that have shaped the most competitive industrial production, including the integration of international trade and a fluid reallocation of resources between companies through the fragmentation of the value chains. Based on this scenario, the objective of this work is to analyze how the protectionist position adopted by Brazil in relation to the international market impacts country’s process of industrialization.

Proposito: El proposito en este articulo es proponer un modelo para guiar a grandes empresas que quieren implementar Corporate Venture. Metodologia: Se analizaron 4 grandes empresas y 8 startups en Chile que estan relacionadas a traves de Corporate Venture, realizando entrevistas semiestructuradas con los responsables de innovacion o Corporate Venture en las grandes empresas, y fundadores o gerentes de las startups. Se validaron criterios teoricos de seleccion de las empresas, entre las que se incluyen: Modelo de negocio, grado y tipo de innovacion, propuesta de valor, equipo de trabajo y oportunidad de mercado. Ademas, se compararon los objetivos estrategicos que las empresas seleccionaban al realizar Corporate Venture. Con esto se realizo la propuesta de un modelo de seleccion que consta de cuatro etapas. Originalidad: La propuesta de un modelo surge de la necesidad de una herramienta para la correcta seleccion de startups de parte de la empresa para garantizar beneficios posterio...

When acting as an intermediary, corporate venture capital (CVC) units must balance two different institutional settings: the rigid corporate world and the advancing startup ecosystem. As a result, CVC units are faced with multiple voids that influence their organizational orientation toward one environment. This study employs text analysis on a unique sample of 22 CVC dyads to introduce a novel empirical way of measuring isomorphic variation over time. Following a mixed-method approach, the quantitative results are used to shed light on potential drivers of isomorphism, compiled by semi-structured interviews. The findings demonstrate that the degree of isomorphism is not only determined by decisions made during the initial phase of a CVC unit, but also from mimetic processes that occur within the lifespan of such investment vehicles. The study thereby contributes to the ongoing academic discussion by elucidating potential drivers of isomorphism and provides researchers with a novel way to measure isomorphic tendencies based on organizational text excerpts.

Current debates in science and technology studies emphasize that the bio-economy—or, the articulation of capitalism and biotechnology—is built on notions of commodity production, commodification, and materiality, emphasizing that it is possible to derive value from body parts, molecular and cellular tissues, biological processes, and so on. What is missing from these perspectives, however, is consideration of the political-economic actors, knowledges, and practices involved in the creation and management of value. As part of a rethinking of value in the bio-economy, this article analyzes three key political-economic processes: financialization, capitalization, and asseti-zation. In doing so, it argues that value is managed as part of a series of valuation practices, it is not inherent in biological materialities.

We examine the effect of investments by corporate venture capitalists (CVCs) on the governance structures of venture backed IPOs. One of the main differences between CVCs and traditional venture capitalists (TVCs) is that the former often invest for strategic reasons and enter into various types of strategic alliances with their portfolio firms that last well beyond the IPO. We argue that the presence of such strategic alliances will have a significant impact on the governance structure of CVC backed firms when they go public and in the following years. Using a sample of venture backed IPOs, we evaluate several hypotheses concerning the role of CVCs in the corporate governance of newly public firms. We find that strategic CVC backed IPOs have weaker CEOs and more independent directors on the board and on the compensation committee than a carefully selected sample of matching firms. In addition, the probability of forced CEOs turnover is higher for strategic CVC backed IPOs, while at the same time these firms use staggered boards more frequently. In contrast, the governance structures of purely financial CVC backed IPO firms and their matching firms do not exhibit any significant differences.

There is a plethora of different studies and researches on women in venture capital, and venture capital­ financed entrepreneurship. Though these studies provide us with valuable observations, not much is known to have been done to change these trends.

The main goal of the study of WomenVC was not to compare women investors against men, but to analyse the data that could help us to understand the performance of women venture capitalists, which has been never done before, as well as suggest possible measures to strengthen their position in industry.

This article provides an innovative interpretation of the rules of Italian limited responsibility companies (s.r.l.), which takes into account not only and not much the phenome-non of crowdfunding, but also and above all the financing via business angels and venture capital. We therefore advance a proposal for a complete re-reading of the subject as reformed in 2012-2015-2017, aimed wherever possible at making venture capital financing feasible. The proposed construction reflects the original intentions of the legislator, reduces the impact of mandatory rules and is consistent with the deeply felt need to modernise Italian company law.

Corporate investors (CIs) differ from venture capitalists (VCs) in a basic aspect: as incumbent producers in an industry, corporations possess unique resources that VCs lack. For young, startup firms seeking financing, this offers a double-edged sword: access to the corporation's unique resources vis-à-vis the risk of expropriation by the corporation. This paper studies this dilemma encountered by startup firms. Unlike the existing literature, we do not model any differences in the investment objectives of CIs and VCs. Instead, we focus on how the financier's unique resources influence the startup inventor's and the financier's incentives to specialize their resources, on the one hand, and to expropriate each other's resources, on the other hand. We show that while increased complementarity increases the likelihood of CI financing when the resources are difficult to expropriate, this result is reversed when the resources are easy to expropriate. We also predict that CI financing predominates when (i) intellectual property (IP) protection is stronger; (ii) product market competition is lower; and (iii) when the resources are difficult to expropriate. Further, the effects of IP protection and product market competition are disproportionately greater when resources are easy to expropriate.

"If some people don't break the rules sometimes, then a normal society will cease to function. Breaking the wrong rules for the wrong reasons is like breaking legs though. And if everyone breaks the rules, then a society will disintegrate. A paradox? Yes. See how this cake is baked...

The vector in play is the scarce resource of competence. Most people doing most things are marginally competent at best, and this is in every area of human activity, taken in its aggregate. Any given individual may be good at one thing - cooking, music, his job, whatever - but the aggregate of people doing any of those activities will be indifferently capable. In fact, a significant number will be seriously incapable, and they may do damage out of proportion to their numbers. There will be a small number who are brilliant at this particular thing..."

Propósito: El propósito en este artículo es proponer un modelo para guiar a grandes empresas que quieren implementar Corporate Venture. Metodología: Se analizaron 4 grandes empresas y 8 startups en Chile que están relacionadas a través de Corporate Venture, realizando entrevistas semiestructuradas con los responsables de innovación o Corporate Venture en las grandes empresas, y fundadores o gerentes de las startups. Se validaron criterios teóricos de selección de las empresas, entre las que se incluyen: Modelo de negocio, grado y tipo de innovación, propuesta de valor, equipo de trabajo y oportunidad de mercado. Además, se compararon los objetivos estratégicos que las empresas seleccionaban al realizar Corporate Venture. Con esto se realizó la propuesta de un modelo de selección que consta de cuatro etapas. Originalidad: La propuesta de un modelo surge de la necesidad de una herramienta para la correcta selección de startups de parte de la empresa para garantizar beneficios posterio...

Propósito: El propósito en este artículo es proponer un modelo para guiar a grandes empresas que quieren implementar Corporate Venture. Metodología: Se analizaron 4 grandes empresas y 8 startups en Chile que están relacionadas a través de Corporate Venture, realizando entrevistas semiestructuradas con los responsables de innovación o Corporate Venture en las grandes empresas, y fundadores o gerentes de las startups. Se validaron criterios teóricos de selección de las empresas, entre las que se incluyen: Modelo de negocio, grado y tipo de innovación, propuesta de valor, equipo de trabajo y oportunidad de mercado. Además, se compararon los objetivos estratégicos que las empresas seleccionaban al realizar Corporate Venture. Con esto se realizó la propuesta de un modelo de selección que consta de cuatro etapas. Originalidad: La propuesta de un modelo surge de la necesidad de una herramienta para la correcta selección de startups de parte de la empresa para garantizar beneficios posteriores, por lo cual, en este modelo se utiliza la combinación de factores objetivos y subjetivos mediante la adaptación del modelo de Brown & Gibson (1972). Resultados: Como resultado de la investigación se detectaron objetivos estratégicos al momento de realizar Corporate Venture. Se pudo identificar el Corporate Venture cómo una nueva forma de emprendimiento corporativo en Chile y que las empresas lo están aplicando para poder dinamizar los procesos de innovación mediante la conexión directa con startups. El estudio indicó las herramientas más utilizadas para aplicar Corporate Venture y los criterios de decisión más importantes para evaluar las oportunidades de inversión de una empresa. Contribuciones teóricas / metodológicas: El modelo sería aplicable a cualquier empresa que quiera realizar actividades de Corporate Venture, pero está sujeta al enfoque de cada compañía.

We explore the conditions under which firms pursue equity investment in new ventures as a way to source inventions. We find that firms invest more in new ventures in industries with high technological ferment, weak intellectual-property protection, and where complementary distribution capability is important. Furthermore, firms that have positive cash flow and a history of innovation are more likely to invest. Our results suggest that in Schumpeterian environments characterized by high innovation rates, incumbent firms may supplement their innovative efforts by tapping into the knowledge generated by new ventures.

research which consists of four parts: entrepreneurial mind-set, culture and values; entrepreneurship education; entrepreneurship development; and conclusion. This interesting entrepreneurship book explains and discusses the current issues, developments, conceptual richness and methodological diversity within entrepreneurship. Further, this book has also compiled and selected a number of case studies to demonstrate the practical and unique