Financing knowledge-intensive enterprises: evidence from CVCs in the US

Matteo Rossi (), Giuseppe Festa (), Ludovico Solima () and Simona Popa ()
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Matteo Rossi: University of Sannio
Giuseppe Festa: University of Salerno
Ludovico Solima: Second University of Naples
Simona Popa: University of Murcia

The Journal of Technology Transfer, 2017, vol. 42, issue 2, No 8, 338-353

Abstract: Abstract Since the 1990s, the importance of corporate venture capital (CVC) programs has grown around the world. CVCs are investments that established firms make in entrepreneurial companies. At the most basic level, CVC describes an equity investment made by a corporation or its investment entity in a high growth, high potential, privately held business. There is no systematic evidence that corporate venture capital investments create value for the investing firms. Firm value, however, can be created as a result of other benefits from investing (e.g., accessing a new technology). These considerations can explain why many firms currently choose to operate venture units: They have recognized the importance of CVC for strategic innovation in addition to its potential to generate financial returns. Some evidence from the US context described in this paper supports this intuition.

Keywords: Corporate venture capital; Innovation; Financial returns; Strategic capabilities; Start-ups; CVC waves (search for similar items in EconPapers)
JEL-codes: G34 M10 M13 M16 P12 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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DOI: 10.1007/s10961-016-9495-2

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