Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/40930
Authors: 
Czarnitzki, Dirk
Dick, Johannes M. H.
Hussinger, Katrin
Year of Publication: 
2010
Series/Report no.: 
ZEW Discussion Papers 10-060
Abstract: 
Established firms often face significant obstacles to innovation. As a solution, it has been suggested to form corporate ventures. Based on a sample of corporate and independent ventures in German manufacturing, we show that corporate ventures are more innovative than the control group, i.e. the independent ventures. In particular, corporate ventures are more successful at developing radical innovations. This effect, however, decreases with the ventures' degree of ownership concentration. We conclude that corporate ventures with a high ownership concentration are more likely to be controlled and monitored by their corporate sponsors, resulting in less favorable conditions for radical innovation.
Subjects: 
corporate entrepreneurship
start-ups
radical innovation
JEL: 
L26
M13
O31
O32
Document Type: 
Working Paper

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