The contribution of corporate ventures to radical innovation

Dirk Czarnitzki, Johannes M. H. Dick and Katrin Hussinger

No 10-060, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: Established firms often face significant obstacles to innovation. As a solution, it has been suggested to form corporate ventures. Based on a sample of corporate and independent ventures in German manufacturing, we show that corporate ventures are more innovative than the control group, i.e. the independent ventures. In particular, corporate ventures are more successful at developing radical innovations. This effect, however, decreases with the ventures' degree of ownership concentration. We conclude that corporate ventures with a high ownership concentration are more likely to be controlled and monitored by their corporate sponsors, resulting in less favorable conditions for radical innovation.

Keywords: corporate entrepreneurship; start-ups; radical innovation (search for similar items in EconPapers)
JEL-codes: L26 M13 O31 O32 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-ent, nep-ino and nep-sbm
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:10060

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