Corporate Venture Capital (CVC) investments and technological performance: Geographic diversity and the interplay with technology alliances

Rene Belderbos, Jojo Jacob and Boris Lokshin

No 596673, Working Papers of Department of Management, Strategy and Innovation, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven

Abstract: Firms are increasingly operating portfolios of geographically dispersed CVC investments for accessing a variety of location-specific knowledge, often alongside traditional external knowledge-sourcing strategies such as technology alliances. We examine the conditions under which geographic diversity in corporate venture capital (CVC) investments has positive consequences for firms’ technological performance in the context of simultaneously pursued technology alliance strategies. We find that geographic diversity in CVC portfolios enhances performance as long as firms avoid knowledge redundancy in knowledge-sourcing arising from geographic overlaps with technology alliances, and the managerial complexity, coordination costs, and resource constraints stemming from the simultaneous pursuit of diversity in both technology alliances and CVC investments. Our inferences draw on a panel data set on the patents, CVC investments, and technology alliances of 55 CVC-active firms in a variety of industries.

Keywords: CVC investments; technology alliances; technological performance (search for similar items in EconPapers)
Date: 2017-10
New Economics Papers: this item is included in nep-cse, nep-geo and nep-ino
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Published in FEB Research Report MSI_1711

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https://lirias.kuleuven.be/retrieve/473100 MSI_1711 (application/pdf)

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Journal Article: Corporate venture capital (CVC) investments and technological performance: Geographic diversity and the interplay with technology alliances (2018)
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