The influence of R&D investment on the use of corporate venture capital: An industry-level analysis

Arvin Sahaym, H. Kevin Steensma and Jeffrey Q. Barden

Journal of Business Venturing, 2010, vol. 25, issue 4, 376-388

Abstract: 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.

Keywords: Absorptive; capacity; R&; D; Options; CVC; Exploration (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:25:y:2010:i:4:p:376-388

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