|Title||The influence of R&D investment on the use of corporate venture capital: An industry-level analysis |
|Publication Type||Journal Articles |
|Year of Publication||2010 |
|Authors||Sahaym, A, Steensma, K, Barden, J |
|Journal||Journal of Business Venturing |
|Date Published||2010 |
|Keywords||Doctoral Program, MBA, Strategy & Entrepreneurship |
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.