Strategic venture investments for innovation: an international study of external and internal drivers of corporate venture capital

Sammanfattning: This paper takes the perspective of corporate venture capital (CVC) as a form of external R&D for established firms. The focus of the study is on the external and internal factors that affect the number of CVC investments made. By defining corporate firms' objective as strategic, it is possible to distinguish it from individual venture capital (IVC) funds that are driven by financial motives. Using longitudinal data comprised of 941 firms observed over 6 years, the hypotheses of different variables are tested. The analysis shows that the local bankruptcy law has a significant positive effect on the number of CVC investments made. This study also reveals that firms tend to diversify away from their primary sector in their CVC investing