Dushnitsky, G and Yu, L (2022) Why do incumbents fund startups? A study of the antecedents of corporate venture capital in China. Research Policy, 51 (3). p. 104463. ISSN 0048-7333
Abstract
Established firms are instrumental in funding entrepreneurial ventures, a practice known as corporate venture capital (CVC). Yet, our knowledge of the reasons firms engage in CVC is calibrated mainly on data from the United States and Europe. Such a restricted focus limits our understanding of CVC practices and objectives. Accordingly, we adopt an abductive approach to study the antecedents of CVC in China. The country is a vibrant entrepreneurial setting, second only to the USA in total startup numbers and funding amounts. We construct a comprehensive data of Chinese CVCs during the late 2010s by integrate Chinese and international databases. Cross-industry analyses of CVC patterns underscore a novel objective; one that is predominantly associated with harnessing growth through market expansion rather than the prevailing view of CVC as a window on technology. The findings mirror the features of the Chinese setting, where entrepreneurs profit from the dramatic expansion in economic activity and serve as a vehicle to leverage the global innovation frontier.
More Details
Item Type: | Article |
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Subject Areas: | Strategy and Entrepreneurship |
Additional Information: |
© 2021 The Author(s). Published by Elsevier B.V. This is an open access article under the Creative Commons CC BY-NC-ND licence |
Funder Name: | National Natural Science Foundation of China, National Natural Science Foundation of China, National Natural Science Foundation of China |
Date Deposited: | 11 Jan 2022 16:12 |
Date of first compliant deposit: | 11 Jan 2022 |
Subjects: |
China Entrepreneurs Venture capital companies |
Last Modified: | 05 Nov 2024 03:11 |
URI: | https://lbsresearch.london.edu/id/eprint/2193 |