Corporate venture capital: technological innovation or value creation? A comparative study of CVC- and IVC-invested Chinese listed companies. Issue 3 (2nd September 2019)

• Record Type: Journal Article
• Authors: Wang, Lei; Zhou, Fangzhao; An, Yunbi; Yang, Jun
• Is Part Of: Asian journal of technology innovation. Volume 27:Issue 3(2019)
• Page Start: 257
• Page End: 279
• Publication Date: 2019-09-02
• Subjects: Corporate venture capital -- independent venture capital -- technological innovation -- firm value; G23 -- G24; Technological innovations -- East Asia -- Periodicals; Technological innovations -- Southeast Asia -- Periodicals; Technological innovations -- Periodicals; Research, Industrial -- East Asia -- Periodicals; Research, Industrial -- Southeast Asia -- Periodicals; Research, Industrial -- Periodicals; 338.064095
• DOI: 10.1080/19761597.2019.1669470
• Languages: English
• ISSNs: 1976-1597

Abstract

ABSTRACT: This paper analyzes the effects of corporate venture capital (CVC) and independent venture capital (IVC) backing on technological innovation and value creation in invested companies. Using data on Chinese listed companies, we show that CVC investment can induce higher firm value than can IVC investment. By considering different dimensions of complementary assets, technological fit, geographical proximity, and product market relations, we explore the mechanism through which CVC contributes to innovation and value creation in invested companies in China.