The Institute of Management & Strategy (IoMS-HSG) has invited Prof. Christopher Tucci to a research seminar at the University of St. Gallen. Christopher Tucci is Professor of Corporate Strategy & Innovation at the of College of Management of Technology, EPFL.
Putting “dumb money” to good use? Corporate venture capital as a complement to internal R&D
The role of corporate venture capital (CVC) programs inside the firm has received relatively little scholarly attention. Do these programs substitute for traditional corporate investments, such as R&D? Or do they complement internal R&D? To further explore this phenomenon, we have developed a dataset of corporations initiating CVC programs from 1973-2001. We find that the existence of a CVC program is positively associated with the level of corporate R&D spending. We also find that a combination of having a CVC program and higher R&D spending is associated with higher firm performance, thus concluding that CVC investments can complement other corporate innovation initiatives.