Corporate venture capital, value creation, and innovation

• Autores: Thomas J. Chemmanur, Elena Loutskina, Xuan Tian
• Localización: Review of Financial Studies, ISSN-e 1465-7368, Vol. 27, Nº. 8, 2014, págs. 2434-2473
• Idioma: inglés
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• Dialnet Métricas: 1 Cita
• Resumen

  • We analyze how corporate venture capital (CVC) differs from independent venture capital (IVC) in nurturing innovation in entrepreneurial firms. We find that CVC-backed firms are more innovative, as measured by their patenting outcome, although they are younger, riskier, and less profitable than IVC-backed firms. Our baseline results continue to hold in a propensity score matching analysis of IPO firms and a difference-in-differences analysis of the universe of VC-backed entrepreneurial firms. We present evidence consistent with two possible underlying mechanisms: CVC's greater industry knowledge due to the technological fit between their parent firms and entrepreneurial firms and CVC's greater tolerance for failure.