TitleThe influence of R&D investment on the use of corporate venture capital: An industry-level analysis
Publication TypeJournal Articles
Year of Publication2010
AuthorsSahaym, A, Steensma, K, Barden, J
JournalJournal of Business Venturing
Date Published2010
KeywordsStrategy & 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.