Corporate venture capital : transforming CVC into an effective corporate strategic tool for seeking innovation and growth in the 21st Century

The decline of innovation has hampered the growth of many large corporations as they seek to remain competitive in increasingly challenging conditions. To complement, and at times, replace their internal Research and Development activities, corporations have attempted to seek innovation externally, through collaborations with academia, government, and start-ups. Over the past half-century, companies seeking innovation and growth have launched Corporate Venture Capital (CVC) arms with varied success. This thesis focuses on the CVC - the challenges it faces, and the opportunities it brings to the sponsoring organization. I contend that, despite a highly cyclical and mediocre performance over the last 50 years, CVCs do create value for the corporation and can be used as a strategic tool for seeking innovation. I introduce The Four O's Framework, which illustrates my recommendation for shaping, developing, and managing CVCs. The framework addresses several issues and hurdles CVCs face today, and provides a prescription for its success as corporations seek to reinvent themselves for the future.

Department dc:contributor.department

Sloan School of Management.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2011

Author dc:creator

• Barretto-Ko, Percival

Advisor dc:contributor.advisor

• John E. Van Maanen.

• Sloan School of Management.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/65793

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/65793