Corporate Venture Capital, Value Creation, and Innovation

The Harvard Law School Forum on Corporate Governance and Financial Regulation 2014-07-15

Summary:

Editor's Note: The following post comes to us from Thomas Chemmanur, Professor of Finance at Boston College; Elena Loutskina of the Finance Area at the University of Virginia; and Xuan Tian of the Finance Department at Indiana University.

There is no doubt that innovation is a critical driver of a nation’s long-term economic growth and competitive advantage. The question lies, however, in identifying the optimal organizational form for nurturing innovation. While corporate research laboratories account for two-thirds of all U.S. research, it is not obvious that these innovation incubators are more efficient than independent investors such as venture capitalists. In our paper, Corporate Venture Capital, Value Creation, and Innovation, forthcoming in the Review of Financial Studies, we explore this question by comparing the innovation productivity of entrepreneurial firms backed by corporate venture capitalists (CVCs) and independent venture capitalists (IVCs).

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Link:

http://blogs.law.harvard.edu/corpgov/2014/07/15/corporate-venture-capital-value-creation-and-innovation/

From feeds:

Blogs.law Aggregation Hub » The Harvard Law School Forum on Corporate Governance and Financial Regulation

Tags:

academic research empirical research private equity elena loutskina entrepreneurs external financing innovation r&d subsidiaries tech companies thomas chemmanur venture capital firms xuan tian

Authors:

R. Christopher Small, Co-editor, HLS Forum on Corporate Governance and Financial Regulation,

Date tagged:

07/15/2014, 14:20

Date published:

07/15/2014, 09:53