Academic Journal
The influence of R&D investment on the use of corporate venture capital: An industry-level analysis
"Journal of Business Venturing" 13 pages 2010
Journal Details
Journal of Business Venturing, 2010 Vol. 25 Issue 4 Pages 376-388
Strategy & Entrepreneurship
Journal Article, Academic Journal
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.