Corporate venture capital in Germany

A comparative analysis of 2000 and 2003

authored by

Bent Reichardt, Christiana Weber

Abstract

Established corporations are often at a disadvantage vis à vis technology-based entrepreneurial firms when it comes to generating and adapting to radical technological and business-model innovation. Consequently, industrial corporations increasingly wanted to participate in the financial or strategic success of start-ups. The tool of choice for many corporations was Corporate Venture Capital (CVC). CVC had already seen two waves of popularity in the USA when it was introduced in Germany in the early 1990s. This development is often assumed to have come to a halt in 2001, when so-called 'New Economy' spiraled into decline. This paper analyzes central attributes of strategy, investment and organization of the CVC units active in Germany in 2000 and 2003. We find evidence for a continuation of strong CVC activity in Germany. We differentiate between CVC units that were a) active at both points in time, i.e. 'survivors' b) those that have closed down since 2000, i.e. 'losers' and c) those that were founded after 2000, 'new entrants'. The comparison of the characteristics allows us to make inferences for the use of CVC.

External Organisation(s)

University of St. Gallen (HSG)
Berlin Social Science Center (WZB)

Type

Article

Journal

Technological Forecasting and Social Change

Volume

73

Pages

813-834

No. of pages

22

ISSN

0040-1625

Publication date

09.2006

Publication status

Published

Peer reviewed

Yes

ASJC Scopus subject areas

Business and International Management, Applied Psychology, Management of Technology and Innovation

Sustainable Development Goals

SDG 9 - Industry, Innovation, and Infrastructure

Electronic version(s)

https://doi.org/10.1016/j.techfore.2005.12.008 (Access: Closed)