The Life Cycle of Corporate Venture Capital

• 成果类型: Article
• 署名作者: Ma, Song
• 署名单位: Yale University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz042
• 发表日期: 2020
• 页码: 358
• 关键词: research-and-development; PRIVATE EQUITY; KNOWLEDGE; spillovers; INVESTMENT; BOUNDARIES; diffusion; alliances; IMPACT

摘要

This paper investigates why industrial firms conduct Corporate Venture Capital (CVC) investment in entrepreneurial companies. I test alternative views on CVC by exploiting the entry, investment, and termination decisions of CVC divisions. CVC entry concentrates in firms that experience deteriorations of internal innovation. At the investment stage, CVCs select startups with a similar technological focus but that have a non-overlapping knowledge base, and they integrate technologies generated from these ventures that create strategic value. CVCs are terminated when parent firms' innovation recovers. Overall, the strategic desire to fix innovation weaknesses after adverse shocks motivates firms to adopt CVCs.